Latest / The SME Stream / Bayleys' Lloyd Budd 'Sometimes we have to say, what are the sacrifices '

Transcript

Bayleys' Lloyd Budd 'Sometimes we have to say, what are the sacrifices ' · The SME Stream

• 0:02
  Speaker 1: Madam.
• 0:06
  Speaker 2: Hi, I'm Liam Dan, New Zealand Herald's Business editor at
• 0:09
  Speaker 2: Large and welcome to this episode of Money Talks. This
• 0:13
  Speaker 2: is a podcast about money, but we're not going to
• 0:16
  Speaker 2: tell you how to get rich, and we're not going
• 0:18
  Speaker 2: to try and pick the next interest rate move. In
• 0:21
  Speaker 2: this series, I'll be talking to interesting New Zealanders about
• 0:24
  Speaker 2: how money has shaped their lives and what they've learned
• 0:27
  Speaker 2: over the years. For today's podcast, I'm joined by Chief
• 0:31
  Speaker 2: executive of Bailey's Auckland, Lloyd Bud. You're a Lloyd. Welcome
• 0:35
  Speaker 2: to Money Talks.
• 0:36
  Speaker 3: Thanks Leam, great to be here.
• 0:38
  Speaker 2: Yeah, look, just before we get into it, can't really
• 0:41
  Speaker 2: talk to a real estate chief without just saying, how's
• 0:44
  Speaker 2: this really tough winter going? It is pretty grim out
• 0:47
  Speaker 2: there in the property market right.
• 0:49
  Speaker 1: Luckily, and we're seeing really positive trends i'ming through at
• 0:52
  Speaker 1: the moment. I was just on a call with the
• 0:54
  Speaker 1: team this morning. Our July numbers are about nineteen percent
• 0:59
  Speaker 1: on last year. The number of inquiries we're coming through
• 1:03
  Speaker 1: have increased as well month on month, so we're seeing
• 1:05
  Speaker 1: this momentum coming into spring really positive. And while we
• 1:09
  Speaker 1: know there's been some conversation around, prices hopping around. I
• 1:14
  Speaker 1: think we're starting to see confidence returning.
• 1:16
  Speaker 2: Yeah, so that that interest rate story must start to
• 1:18
  Speaker 2: take hold, right, and people can see hopefully that things
• 1:21
  Speaker 2: extarting to move.
• 1:22
  Speaker 3: Yeah, very much, so very much. And the rhetoric as well.
• 1:26
  Speaker 1: Right, I mean we are going to see an ocr
• 1:28
  Speaker 1: coming off in the next six months. You'll know that
• 1:31
  Speaker 1: answer better than me. But ultimately I think that's that
• 1:34
  Speaker 1: word confidence, That word momentum is something we're seeing a
• 1:37
  Speaker 1: lot coming back into both buyers and sellers at the moment.
• 1:40
  Speaker 2: Sure, well, look, we'll talk a bit more about property
• 1:43
  Speaker 2: later on, but let's go right back. I want to
• 1:45
  Speaker 2: ask you, yeah, if you can tell me a little
• 1:47
  Speaker 2: bit about your first memories of having money and having
• 1:50
  Speaker 2: money around you growing up.
• 1:52
  Speaker 1: It's a fascinating story and prompted for today to go
• 1:56
  Speaker 1: back and actually think about some of these memories. Was
• 1:59
  Speaker 1: really interesting family as well. But it was actually a
• 2:02
  Speaker 1: Christmas and my birthdays around Christmas, and I know there's
• 2:05
  Speaker 1: lots of presents flying around and you're in that sort
• 2:08
  Speaker 1: of family environment, people and wrapping things. And my name
• 2:11
  Speaker 1: was on this and it Kelly looked like a pop
• 2:14
  Speaker 1: plant or some sort of an indoor, a mini tree basically,
• 2:19
  Speaker 1: and it was all wrapped up quite nicely, and I
• 2:22
  Speaker 1: went to it, and as I opened it, I found
• 2:24
  Speaker 1: that that money was actually staple to the leaves, and
• 2:28
  Speaker 1: in some cases coins were celutaped onto them. And I
• 2:33
  Speaker 1: thought this was really fascinating because I always wondered where money.
• 2:36
  Speaker 3: Had come from.
• 2:36
  Speaker 2: Yeah, yeah, on trees.
• 2:39
  Speaker 3: That was the Joe intended.
• 2:40
  Speaker 1: And I think for my parents to actually have given
• 2:44
  Speaker 1: me that, there must have been something in my behavior
• 2:47
  Speaker 1: that had implied it was quite important to me, and
• 2:50
  Speaker 1: they wanted to maybe teach me that maybe it didn't
• 2:52
  Speaker 1: grow on trees and I had to learn other ways
• 2:54
  Speaker 1: to make a dollar.
• 2:55
  Speaker 2: Yeah, So I mean they could have just given you
• 2:58
  Speaker 2: some money. It's a way to make you think and
• 3:01
  Speaker 2: start a conversation with your parents. You know, quite good
• 3:04
  Speaker 2: on that front around around money and financial matters. Did
• 3:07
  Speaker 2: you grow up in a household where it was that
• 3:10
  Speaker 2: financial literacy?
• 3:11
  Speaker 3: Very much so?
• 3:12
  Speaker 1: And also I think I learned from a young age
• 3:16
  Speaker 1: the value of money. You know, I didn't get pocket
• 3:19
  Speaker 1: money as such. There was an expectation for us to
• 3:23
  Speaker 1: do certain things and be a contribute towards the household.
• 3:27
  Speaker 1: But understanding what that went towards in terms of paying
• 3:30
  Speaker 1: a mortgage and putting groceries on the table. But I
• 3:33
  Speaker 1: do remember one story with Dad. I borrowed the family car,
• 3:38
  Speaker 1: and I don't know where i'd been, but I felt
• 3:40
  Speaker 1: that I was in a fifty K zone and I wasn't. Sorry,
• 3:44
  Speaker 1: I found I was in an eighty K zone and
• 3:46
  Speaker 1: I wasn't And I got caught doing eighty kilometers in
• 3:49
  Speaker 1: a fifty.
• 3:49
  Speaker 2: Right, and I read a big fine.
• 3:52
  Speaker 1: Yeah, so we're probably going back to the late nineties now,
• 3:56
  Speaker 1: and I reckon that fine would have been say four
• 3:59
  Speaker 1: hundred dollars back then. And so while I wasn't earning
• 4:03
  Speaker 1: pocket money, I was given a Dad paid the fine
• 4:07
  Speaker 1: for me, and I was given jobs and allocated and
• 4:11
  Speaker 1: even sporting performances and academic performances that were given monetary
• 4:15
  Speaker 1: value to them targets the hat. So as I achieved
• 4:20
  Speaker 1: one of those, we had this little notebook and I
• 4:22
  Speaker 1: bet a cross off from four hundred and sixty dollars
• 4:25
  Speaker 1: at the top right down to getting to zero dollars
• 4:28
  Speaker 1: at the bottom.
• 4:28
  Speaker 3: And it took a long time.
• 4:29
  Speaker 1: Yeah, but it really did help understand that financial literacy
• 4:34
  Speaker 1: from you know, right from school?
• 4:36
  Speaker 2: Yeah, so where were you growing up? Was the where
• 4:38
  Speaker 2: was the crash?
• 4:39
  Speaker 3: It wasn't a crash.
• 4:43
  Speaker 1: The speeding the speeding, Yes, the incorrect reading is sign. Look,
• 4:48
  Speaker 1: I grew up in FUNDA proud Norse boy. Yeah, okay,
• 4:51
  Speaker 1: the tiny fa always been around rugby and growing up
• 4:54
  Speaker 1: in Northland was a big part of my childhood. But
• 4:58
  Speaker 1: we're this particular happened. We actually moved down to Palmers
• 5:03
  Speaker 1: North which was a wonderful move from a schooling and
• 5:07
  Speaker 1: an opportunity point of view to come across as perhaps
• 5:11
  Speaker 1: a slightly biggest school in Palmi Boys, a bit more discipline.
• 5:16
  Speaker 1: We had a wrecked by the name of David Simms,
• 5:19
  Speaker 1: so there was a lot of change in that time.
• 5:22
  Speaker 2: Sure academically, were you you know, were you interested in
• 5:25
  Speaker 2: money at school? Did you think?
• 5:27
  Speaker 1: Or?
• 5:28
  Speaker 2: I guess property is a weird thing to be interested
• 5:30
  Speaker 2: in as a kid, but the idea of buying and
• 5:32
  Speaker 2: selling and that sort of thing.
• 5:33
  Speaker 1: Yeah, yeah, interesting money, property, the two obviously hand in hand.
• 5:38
  Speaker 1: The incredible thing for me was for property. I don't
• 5:42
  Speaker 1: think I really had a genuine interest in that while
• 5:45
  Speaker 1: I was at school or while I was growing up.
• 5:47
  Speaker 3: Yeah, I was interested in money.
• 5:49
  Speaker 1: Yeah, And I after I would finish my rugby training
• 5:54
  Speaker 1: or my sports after school, I would go and load
• 5:57
  Speaker 1: up literally load palettes full of bricks or tiles or
• 6:01
  Speaker 1: timber up at the local policemakers in Palmersan North and
• 6:05
  Speaker 1: in seven dollars an hour and doing that. So I
• 6:09
  Speaker 1: think clearly that understanding of having to work for money
• 6:14
  Speaker 1: and earn money to spend was something that was really
• 6:17
  Speaker 1: understood in that kind of later teen years.
• 6:20
  Speaker 2: Yeah, I mean, was there was there anything you were
• 6:21
  Speaker 2: you know, at that stage where you're saving for staff
• 6:23
  Speaker 2: or you're spending it each week.
• 6:26
  Speaker 3: I was always a saver.
• 6:28
  Speaker 1: I was always I don't know what I was saving for,
• 6:31
  Speaker 1: But again I guess I went back to that intrinsic Well,
• 6:36
  Speaker 1: I guess what was taught into me from my family,
• 6:38
  Speaker 1: just just protecting that as a very valuable asset and saving.
• 6:41
  Speaker 3: For what that might what that might be.
• 6:44
  Speaker 2: Yeah, clearly you got interested in property and real estate
• 6:47
  Speaker 2: at a young age, right, like I understand that you
• 6:50
  Speaker 2: you sort of met Bailey himself.
• 6:55
  Speaker 1: Yeah, so, so I was applying for a few scholarships,
• 6:58
  Speaker 1: so talk about money, right, so we barely know you
• 7:00
  Speaker 1: scholarships leaving high school and going into university. Money is
• 7:04
  Speaker 1: incredibly important student loans and books and fees and all
• 7:07
  Speaker 1: the things. And I met John Bailey, who was our chairman.
• 7:12
  Speaker 1: He's still involved in the company to today, some fifty
• 7:18
  Speaker 1: years later, and I met him at a function and
• 7:20
  Speaker 1: I was fortunate enough to be speaking about the scholarship
• 7:25
  Speaker 1: and what I would potentially do with my career. And
• 7:28
  Speaker 1: I walked off the stage and John Bailey came and
• 7:31
  Speaker 1: shooed himself to me and said, you work.
• 7:34
  Speaker 3: For me now. I said, okay, that's great, thank you,
• 7:38
  Speaker 3: Thank you John.
• 7:39
  Speaker 1: Looking at his business card and I said, what do
• 7:43
  Speaker 1: you do and he says, well, I'm the chairman of Bailey's.
• 7:45
  Speaker 3: And I said, oh, that's fantastic. What did they do? Yeah?
• 7:50
  Speaker 1: Yeah, Well here I am, at seventeen years old, no
• 7:54
  Speaker 1: clue of real estate to even know, yeah, you know,
• 7:57
  Speaker 1: a brand such as the Bailey.
• 7:58
  Speaker 2: Well, I mean there isn't you know, isn't that much
• 8:00
  Speaker 2: of a reason unless you you know, I don't know
• 8:02
  Speaker 2: what your parents were doing, but unless you grow up
• 8:04
  Speaker 2: on it to know how that whole property sector works, right, correct?
• 8:08
  Speaker 1: And I think it's something we talked about financial literacy,
• 8:12
  Speaker 1: and I think we do learn about demand and supply
• 8:14
  Speaker 1: and schools, we do learn a lot about the basics
• 8:17
  Speaker 1: of that.
• 8:17
  Speaker 3: But you know, properties people's biggest purchase.
• 8:21
  Speaker 1: That they may be maybe the biggest decision they'll make
• 8:23
  Speaker 1: in their lives, and generally we're not preparing people well
• 8:27
  Speaker 1: enough forward as they go in to make those decisions.
• 8:29
  Speaker 3: Yeah.
• 8:29
  Speaker 1: Yeah, I mean you're talking to an expert here, but
• 8:33
  Speaker 1: you know, the number of New Zealanders that own their
• 8:35
  Speaker 1: homes is declining every year, right, Yeah, I think your
• 8:37
  Speaker 1: last stats had them at fifty six percent of New
• 8:39
  Speaker 1: Zealander's own a home. I'd love to have more literacy
• 8:42
  Speaker 1: and more planning to help people get that pathway towards
• 8:47
  Speaker 1: home ownership.
• 8:48
  Speaker 3: Sure.
• 8:48
  Speaker 2: Yeah, So when you're standing on the stage and doing speech,
• 8:51
  Speaker 2: what you know before hit met John Bailey, what were
• 8:53
  Speaker 2: you thinking of doing and what we're talking about at
• 8:54
  Speaker 2: that point?
• 8:56
  Speaker 3: Honestly, I just don't know. I mean, you're seventeen years older.
• 8:59
  Speaker 1: I mean, there was definitely an attraction towards a sales
• 9:05
  Speaker 1: or marketing or career where you could use those skills,
• 9:10
  Speaker 1: and obviously the real estate opportunity is one that meets
• 9:14
  Speaker 1: sales and marketing with puts all that to the tests
• 9:17
  Speaker 1: in front of a customer every day.
• 9:18
  Speaker 3: Yeah.
• 9:19
  Speaker 2: Sure, I mean did you take them up on it?
• 9:20
  Speaker 2: Did you start working for them that early?
• 9:23
  Speaker 3: I literally did lamb.
• 9:24
  Speaker 1: Literally, this would have been November or December in the
• 9:29
  Speaker 1: year two thousand and I started working January two thousand
• 9:32
  Speaker 1: and one.
• 9:32
  Speaker 3: Wow.
• 9:32
  Speaker 2: And did you go straight in as an actual You've
• 9:36
  Speaker 2: got a train of bit for a real estate agent,
• 9:37
  Speaker 2: But how did you go in? Did you go in
• 9:39
  Speaker 2: and start selling?
• 9:40
  Speaker 3: Yeah?
• 9:40
  Speaker 1: So I was still studying, So I was doing my
• 9:43
  Speaker 1: degree while I was working for family, So you can't
• 9:46
  Speaker 1: actually conduct real estate sales and those sort of things.
• 9:50
  Speaker 1: But within our company, we had a research department, and
• 9:54
  Speaker 1: my very first job, I'm looking around the Auckland CBD,
• 9:58
  Speaker 1: just pointing outside at the moment, some one point two
• 10:01
  Speaker 1: million square meters of real estate in the Oakland CBOW.
• 10:04
  Speaker 1: And my first job was to walk every single floor
• 10:08
  Speaker 1: in every single building with a clipboard in hand and
• 10:12
  Speaker 1: write down who was in there, whether it was vacant, well,
• 10:15
  Speaker 1: what they did, you know, whether it was media for
• 10:18
  Speaker 1: ends in me or accounting for video upstairs, whatever it was,
• 10:22
  Speaker 1: and then put all that information into an Excel sheet
• 10:25
  Speaker 1: and analyze it for our agents to see the trends, so.
• 10:29
  Speaker 2: They could see what they've sold, what they potentially could
• 10:31
  Speaker 2: I guess.
• 10:32
  Speaker 1: Directon we would look at things like absorption rates, what
• 10:36
  Speaker 1: sector we're taking the most amount of space and that
• 10:38
  Speaker 1: would lead us towards having conversations with that sector as
• 10:43
  Speaker 1: a target for perhaps new officers.
• 10:45
  Speaker 2: Yeah, I mean it sounds like things took off there.
• 10:47
  Speaker 2: But did you did you finish the degree? Did you
• 10:49
  Speaker 2: go right through?
• 10:50
  Speaker 1: So?
• 10:51
  Speaker 2: What was what was your studying?
• 10:52
  Speaker 3: Yeah? Finished the degree.
• 10:54
  Speaker 1: I was actually a stay on at MASSI in Palmerston
• 10:57
  Speaker 1: North after I finished Army Boys and it was a
• 11:00
  Speaker 1: Bachelor of Business Studies right and through the Massy curriculum
• 11:06
  Speaker 1: you do a property major, but I also did a
• 11:09
  Speaker 1: business a management major as well, right Yeah, yeah, so
• 11:12
  Speaker 1: quite different to say Auckland University that's purely a property
• 11:17
  Speaker 1: focused course that doctor Debra Lee he runs here.
• 11:20
  Speaker 2: Yeah, and it sounds like you're quite into sports. Where
• 11:22
  Speaker 2: did you keep playing rugby and keep the sports going
• 11:25
  Speaker 2: through that?
• 11:27
  Speaker 3: No's a short answer.
• 11:29
  Speaker 1: Look, I think you know we're on Money Talks podcast
• 11:32
  Speaker 1: and that was the answer for me. I was never
• 11:36
  Speaker 1: as talented as others in my class. I was never
• 11:38
  Speaker 1: as talented as others in my family. My brother went
• 11:42
  Speaker 1: on to captain Italy and the Rugby World Cup in
• 11:45
  Speaker 1: Japan and twenty nineteen old man captain North Auckland back
• 11:49
  Speaker 1: in the eighties.
• 11:49
  Speaker 3: So no, it was never the.
• 11:52
  Speaker 1: Most talented in my family by any stretch. But I
• 11:56
  Speaker 1: think the money talks the appeal of getting into a career,
• 12:01
  Speaker 1: and I guess doing the applying the same discipline or
• 12:06
  Speaker 1: training or constant improvement in my career was something that
• 12:10
  Speaker 1: I chose to focus on instead.
• 12:12
  Speaker 2: Yeah, and I mean I guess you know, everybody can
• 12:14
  Speaker 2: get the head around the idea of getting rich or
• 12:16
  Speaker 2: getting wealthy. But it was money the driver, or was
• 12:19
  Speaker 2: it you know, what was driving you to sort of
• 12:22
  Speaker 2: go down that that business path?
• 12:24
  Speaker 1: Do you think it never has been money the driver?
• 12:27
  Speaker 1: And I still don't think it is now. I think
• 12:30
  Speaker 1: it was about, you know, seeing that you could no
• 12:34
  Speaker 1: different to sports or no different to so many other things,
• 12:37
  Speaker 1: that you could set a goal and be able to
• 12:40
  Speaker 1: control or try to corral a whole bunch of independent
• 12:46
  Speaker 1: resources to achieve a common outcome. And I think there's
• 12:51
  Speaker 1: that satisfaction in being able to do that.
• 12:54
  Speaker 2: Put it all together.
• 12:55
  Speaker 1: Yeah, And the outcome might happen to be that we're
• 12:58
  Speaker 1: in a commission. The outcome maybe that someone gets a
• 13:01
  Speaker 1: fantastic result for selling their property. But the pathway or
• 13:05
  Speaker 1: the customer journey to get there is what really excited me. Yeah,
• 13:10
  Speaker 1: that's fascinating to think, isn't it to sell one property?
• 13:13
  Speaker 1: How many touch points, how many resources, how many things
• 13:18
  Speaker 1: have to go right?
• 13:19
  Speaker 2: Yeah for that and the right order and yeah yeah,
• 13:22
  Speaker 2: and and and I guess things that can go wrong,
• 13:24
  Speaker 2: but yeah, yeah, yeah, and so did you did you
• 13:27
  Speaker 2: start selling as soon as you could? And I mean
• 13:30
  Speaker 2: you become a qualified real estate agents soon as you
• 13:33
  Speaker 2: got out.
• 13:34
  Speaker 1: Yeah, so back in those days, once you had your degree, yep,
• 13:37
  Speaker 1: that gave you the ability to sell real estate. We
• 13:40
  Speaker 1: was pre the days of the of the r A.
• 13:43
  Speaker 1: So had the degree and went into project sales and
• 13:46
  Speaker 1: marketing with Bailey. So transferred that research peace into into
• 13:52
  Speaker 1: sales and marketing, and we were working on some phenomenal
• 13:56
  Speaker 1: properties back in those days. Yeah, I think you got
• 13:59
  Speaker 1: to think two thousand three, two thousand and four, it's
• 14:01
  Speaker 1: a huge rush on coastal property. Dealing with some of
• 14:05
  Speaker 1: the New Zealand's wealthiest people on sites and Breamtail and
• 14:09
  Speaker 1: mung Afi or.
• 14:10
  Speaker 2: Yeah, and international money sort of came in around then too,
• 14:13
  Speaker 2: right because the post lord of the Rings New Zealand
• 14:15
  Speaker 2: sort of started humming.
• 14:16
  Speaker 1: Team New Zealand around that time. Absolutely spot on and
• 14:21
  Speaker 1: that was fun. It was again for a young guy
• 14:24
  Speaker 1: into that. It was probably a little bit surreal to
• 14:26
  Speaker 1: see some of that we're talking about money. To see
• 14:29
  Speaker 1: some of that wealth was mind blowing and I think
• 14:33
  Speaker 1: that that might have been part of the inspiration to
• 14:35
  Speaker 1: try and push a bit harder and work a bit
• 14:37
  Speaker 1: harder to see it one day.
• 14:39
  Speaker 3: Yeah, sure, sort of be up at those levels.
• 14:49
  Speaker 2: Did you focus on getting your own property earlier? You're
• 14:52
  Speaker 2: not one of those. You know, we have the stories
• 14:54
  Speaker 2: in the Herald every now and then, you know the
• 14:55
  Speaker 2: kid who's got their first house together at nineteen or
• 14:58
  Speaker 2: something like that.
• 15:00
  Speaker 3: It wasn't quite nineteen, but it was definitely a goal
• 15:02
  Speaker 3: of mine.
• 15:03
  Speaker 1: In fact, my first home was up in Fungoday, so
• 15:06
  Speaker 1: as I said, born and bred up north, and it
• 15:08
  Speaker 1: was an opportunity through work that had taken me to
• 15:12
  Speaker 1: have a lot of interest up in Fungday and I
• 15:15
  Speaker 1: bought my first home for around about I think it
• 15:18
  Speaker 1: was three hundred and twenty seven thousand dollars. Well, yeah,
• 15:21
  Speaker 1: in two thousand and five, I want to say, and
• 15:26
  Speaker 1: you know, it seems mind blowing to think of those
• 15:29
  Speaker 1: numbers now with where medium house prices are and what's
• 15:32
  Speaker 1: going on.
• 15:32
  Speaker 2: Yeah, I mean, I'm old enough to remember when four
• 15:35
  Speaker 2: hundred thousand suddenly it seemed like a big amount for
• 15:39
  Speaker 2: an Auckland house. That's like I remember living in a
• 15:42
  Speaker 2: house on Williams and Avene Pontsanbe gray Lin and hearing
• 15:46
  Speaker 2: that the place I was living in was worth four
• 15:48
  Speaker 2: hundred thousand and thinking, gee, it's probably worth ten times.
• 15:51
  Speaker 2: It's probably with four million.
• 15:52
  Speaker 1: Now keep in mind also, Liam, that you know, two
• 15:55
  Speaker 1: thousand and five, I was probably paying close to nine percent.
• 15:59
  Speaker 2: Yeah, that was rough, right until the GFC kind of
• 16:01
  Speaker 2: pulled the carpet out, and then it was rough for
• 16:03
  Speaker 2: other reasons.
• 16:04
  Speaker 3: That's right.
• 16:04
  Speaker 1: And I'm hearing rates now, you know, stabilizing. I think
• 16:08
  Speaker 1: some of the main banks got rates around six percent
• 16:10
  Speaker 1: for long term money at the moment, and I think
• 16:13
  Speaker 1: we probably have to adjust our expectations on what sustainable
• 16:17
  Speaker 1: interest rates are in terms of supporting that market.
• 16:19
  Speaker 2: Yeah, yeah, absolutely, so how did you go through the
• 16:22
  Speaker 2: GFC then, because you would have been, you know, all
• 16:24
  Speaker 2: go and then there was a big crash in two
• 16:26
  Speaker 2: thousand and seven eight nine.
• 16:28
  Speaker 1: So, through more good luck than good management, I happen
• 16:34
  Speaker 1: to sell a business interest I had in a Bailey's
• 16:37
  Speaker 1: franchise in two thousand and seven, right, and got a
• 16:41
  Speaker 1: one way ticket to d Bai.
• 16:43
  Speaker 3: Yeah.
• 16:43
  Speaker 2: So just to jump back a little bit, you already
• 16:46
  Speaker 2: had a stake in a franchise pretty early on, that's right.
• 16:50
  Speaker 1: Yeah, I was when I was talking about that interest
• 16:53
  Speaker 1: back and fun at eight yep. I was fortunate enough
• 16:55
  Speaker 1: to have a forty five percent share yep of Bailey's
• 16:58
  Speaker 1: in the North. It was twenty three at the time, which.
• 17:02
  Speaker 2: There must be It's got to be some sort of record.
• 17:06
  Speaker 3: Yeah, I'm not sure that.
• 17:11
  Speaker 1: So no, through as I say, more good luck than
• 17:14
  Speaker 1: good management, my business partner and I saw a different future.
• 17:21
  Speaker 1: And I remember speaking with John Bailey jb our chairman,
• 17:25
  Speaker 1: and I love the company. I've obviously worked here literally
• 17:30
  Speaker 1: since the day I left school. I wouldn't mind hitting
• 17:33
  Speaker 1: overseas for twelve months just to MYI most people do
• 17:36
  Speaker 1: it before that. They start their career and Yeah, so
• 17:41
  Speaker 1: fortunate for me. I was actually in Dubai when the
• 17:44
  Speaker 1: GFC had.
• 17:45
  Speaker 2: Yeah, and I guess that was a little bit buffer
• 17:46
  Speaker 2: that that was sort of booming right through to something extent.
• 17:49
  Speaker 1: Absolutely spot on, and Dubai changed a lot on the
• 17:53
  Speaker 1: back of the GFC because it was different money that
• 17:57
  Speaker 1: came in afterwards. But as you say, because of the
• 18:01
  Speaker 1: diversity of people there where the wealth was coming from
• 18:06
  Speaker 1: all over the literally all over the world, it sustained
• 18:10
  Speaker 1: a pretty good momentum through that eighth nine period and
• 18:14
  Speaker 1: ended up being a great place to grow your career.
• 18:16
  Speaker 2: Yeah, so you were selling property there as well.
• 18:20
  Speaker 1: I actually went on the development side for a look
• 18:23
  Speaker 1: under the hood to see what the development world was like.
• 18:27
  Speaker 1: I was an incredible sort of random story on maybe
• 18:32
  Speaker 1: not so much money talks, but I was in.
• 18:34
  Speaker 3: One of my projects was in Syria. Wow. And back
• 18:39
  Speaker 3: in those days, we had the BlackBerry.
• 18:42
  Speaker 1: And they had an app on their equity SOS And
• 18:44
  Speaker 1: one day this thing starts beeping and it turns out
• 18:48
  Speaker 1: that our sales center was quite liked by the rebels
• 18:51
  Speaker 1: who were looking to attack Damascus.
• 18:53
  Speaker 3: Wow.
• 18:53
  Speaker 1: And they turned up one day and took over our
• 18:57
  Speaker 1: sales center. So part of my real estate career, part
• 19:01
  Speaker 1: of my job was to help relocate about a dozen
• 19:05
  Speaker 1: or so families from Syria into other parts of.
• 19:08
  Speaker 3: The Middle East. Wow.
• 19:09
  Speaker 2: Yeah, that high stakes stuff in.
• 19:11
  Speaker 3: The spring and twenty eleven.
• 19:13
  Speaker 2: Yeah, so you were there. You're obviously there for a while.
• 19:16
  Speaker 1: In the end ended up Yeah, my twelve month oughe
• 19:20
  Speaker 1: lasted about five and a half years. I always stayed
• 19:23
  Speaker 1: in touch with the family, the Bailey family back here,
• 19:27
  Speaker 1: but I think that that career opportunity and the scale
• 19:31
  Speaker 1: of what the Middle East offered was something that I
• 19:34
  Speaker 1: was really appealing to me. And it was one of
• 19:38
  Speaker 1: those things that I never ever planned for. You never
• 19:41
  Speaker 1: ever said you'd be here for that long or do that,
• 19:44
  Speaker 1: But as the opportunities presented themselves, it was the right
• 19:48
  Speaker 1: thing for us to to stay and make the most
• 19:51
  Speaker 1: of them.
• 19:51
  Speaker 3: Yeah.
• 19:51
  Speaker 2: Yeah, and you So you came back to around twenty
• 19:55
  Speaker 2: twelve or.
• 19:56
  Speaker 3: So, were with about six years, So twenty fifteen, twenty fifteen,
• 19:59
  Speaker 3: we came back. My wife and I we got married
• 20:02
  Speaker 3: in New Zealand.
• 20:02
  Speaker 1: But while we were away, my daughter was actually born
• 20:06
  Speaker 1: in the American hospital in Dubai in twenty thirteen.
• 20:09
  Speaker 3: So yeah, we had huge life changing experience in Middle.
• 20:13
  Speaker 2: Least, So it was a little bit that lifestyle that
• 20:15
  Speaker 2: you missed coming back to New Zealand looking for the
• 20:18
  Speaker 2: Kiwi life.
• 20:19
  Speaker 3: Absolutely spot on.
• 20:20
  Speaker 1: You know, we talk about it a lot around you know,
• 20:22
  Speaker 1: it's getting in the boat, it's going to spend time
• 20:26
  Speaker 1: with family, it's the I think there's something really special
• 20:30
  Speaker 1: about that New Zealand lifestyle that ultimately we all has
• 20:34
  Speaker 1: been as much time as we can on a beachure
• 20:36
  Speaker 1: on a boat or and that was a huge appeal
• 20:38
  Speaker 1: for us.
• 20:39
  Speaker 3: Yeah.
• 20:39
  Speaker 2: Yeah, Okay, before I ask you a few of our
• 20:41
  Speaker 2: quick fire questions, I'm keen to dig a bit more
• 20:43
  Speaker 2: into the whole the property thing, because you know, it
• 20:46
  Speaker 2: is a fascinating topic, and it is in a way
• 20:48
  Speaker 2: it is a kind of a national obsession. Maybe after
• 20:51
  Speaker 2: Rugby it might be our biggest national obsession. You talked
• 20:55
  Speaker 2: about trying to get those home ownership numbers up, you
• 20:58
  Speaker 2: know other things when you look at it. I guess
• 21:00
  Speaker 2: I'm thinking about tips or advice for the way people
• 21:04
  Speaker 2: should approach getting on the property ladder and also some
• 21:08
  Speaker 2: of the pitfalls to watch out for.
• 21:09
  Speaker 1: Yeah, it's something we obviously get asked a lot and
• 21:13
  Speaker 1: I go back to that confidence and that momentum piece.
• 21:16
  Speaker 1: I think we can all get lost in the noise
• 21:19
  Speaker 1: over what a Rhyan's index has done over one month,
• 21:23
  Speaker 1: for particularly what our price is doing hovering around plus
• 21:28
  Speaker 1: two minus two percent here or there. I think the
• 21:31
  Speaker 1: biggest tip for buyers is what can you afford? Have
• 21:34
  Speaker 1: a really sensible look at a long term rate, five
• 21:37
  Speaker 1: year money. What can you afford to which will set
• 21:41
  Speaker 1: yourself up for not only your own future, but literally
• 21:44
  Speaker 1: generations to come. And then when you're comfortable at that level,
• 21:50
  Speaker 1: make the decision. Be confident because you're not there to
• 21:53
  Speaker 1: buy and sell in a twelve month real estate cycle
• 21:56
  Speaker 1: that might drop from where we are today by two percent,
• 22:00
  Speaker 1: Ultimately you would have gained more by the money you've
• 22:02
  Speaker 1: saved from not paying rent or the pride you take
• 22:06
  Speaker 1: in your property, and therefore you look after things a
• 22:08
  Speaker 1: bit better and make smarter decisions around your career and
• 22:12
  Speaker 1: your family and things like that. So the biggest tip
• 22:16
  Speaker 1: is going, let's let's get out of this kind of
• 22:18
  Speaker 1: short termism. We're not a liquid stock market, we're not
• 22:22
  Speaker 1: a tradable stock. We're buying for generations. And if you
• 22:26
  Speaker 1: think that way, and particularly where we are right now.
• 22:29
  Speaker 1: No one can ever tell you if we're at the
• 22:31
  Speaker 1: bottom or near or whatever. Anyone who says they can
• 22:34
  Speaker 1: is making that up. But what we can say is
• 22:37
  Speaker 1: there is going to be great opportunity as the interest rate,
• 22:40
  Speaker 1: the main driver of value comes back in the next
• 22:43
  Speaker 1: six to nine months, that it's only going to see
• 22:46
  Speaker 1: that investment get more and more valuable as you set up. Yeah,
• 22:49
  Speaker 1: so be confident, but maybe make some tough decisions.
• 22:53
  Speaker 3: You know. I'm not going to sit here and preach
• 22:55
  Speaker 3: and have a.
• 22:55
  Speaker 1: Cardo on toast, but I think sometimes we just have
• 22:58
  Speaker 1: to say, what are the sacrificces that we can make
• 23:01
  Speaker 1: now that in five or ten years time we can
• 23:05
  Speaker 1: bear the rewards of we can be enjoying to then
• 23:09
  Speaker 1: go and by the sparple or extend the room for
• 23:11
  Speaker 1: the new edition and the family or whatever those things
• 23:14
  Speaker 1: may be.
• 23:15
  Speaker 2: Yeah, yeah, I mean I guess that it goes to
• 23:18
  Speaker 2: the pitfalls as well. I mean, there are a few
• 23:20
  Speaker 2: horror stories that we're hearing, you know, like the people
• 23:23
  Speaker 2: saw the two point five percent interest rates is almost
• 23:26
  Speaker 2: as if they were normal and they weren't. Right, So
• 23:29
  Speaker 2: so you know, again it's it's extending that time frame
• 23:31
  Speaker 2: and seeing what's realistic over many years rather than basically
• 23:36
  Speaker 2: what's happening right now, which we're all focused on.
• 23:39
  Speaker 1: Correct And I use the word sustainable in the sense
• 23:42
  Speaker 1: of ongoing rather than necessarily green factors, but having that
• 23:46
  Speaker 1: sustainable look and you know, as I say it might
• 23:49
  Speaker 1: it might be really appealing to save fifty BIPs or
• 23:52
  Speaker 1: one hundred BIPs by going for that short term money,
• 23:54
  Speaker 1: but there's a reason why that's there. So so again
• 23:58
  Speaker 1: I would advise, what what can you afford knowing you
• 24:01
  Speaker 1: can that's sort of three to five year cycle. What
• 24:05
  Speaker 1: can you afford out of your current salaries not having
• 24:08
  Speaker 1: to rely on a bonus or not having to rely
• 24:11
  Speaker 1: on yeah, you know, some sort of lotto windfall or
• 24:15
  Speaker 1: financial windfall. What is the bit that you can honestly
• 24:18
  Speaker 1: sit there and say I can afford this every two
• 24:20
  Speaker 1: weeks out of my mortgage.
• 24:22
  Speaker 3: And once you do that, I don't think you'll ever
• 24:24
  Speaker 3: look back. Yeah.
• 24:25
  Speaker 2: Sure, I mean people will always talk about their affordability
• 24:28
  Speaker 2: of houses and it's got really tough. And so you know,
• 24:31
  Speaker 2: does that when you look at it, does it mean
• 24:33
  Speaker 2: maybe moving around the country that kind of thing because
• 24:35
  Speaker 2: Auckland is pretty daunting for a lot of people. I
• 24:40
  Speaker 2: guess unless you know, unless you're looking at other options,
• 24:42
  Speaker 2: so you've got choices around, maybe apartments, that kind of thing,
• 24:45
  Speaker 2: do you think.
• 24:46
  Speaker 3: I'm probably more on the latter.
• 24:48
  Speaker 1: I think the luxury of moving around the country isn't
• 24:51
  Speaker 1: there for everybody, particularly younger professionals starting up. There may
• 24:55
  Speaker 1: not be the depth of job market, so I think
• 24:59
  Speaker 1: looking with than the Auckland stock, it's actually maybe looking
• 25:02
  Speaker 1: at those other opportunities. It may mean a slightly longer
• 25:06
  Speaker 1: commute and may mean needing to use some of the
• 25:08
  Speaker 1: public transport. Hopefully that eventually improves over the next few years.
• 25:13
  Speaker 1: But I think looking at those different typologies of homes
• 25:16
  Speaker 1: will give you some reach in Auckland and just again
• 25:19
  Speaker 1: getting in. It's not your forever home, it's not you
• 25:22
  Speaker 1: don't have to think, oh I'm not going to be in.
• 25:24
  Speaker 1: It's fine, but start on the ladder to get things moving.
• 25:28
  Speaker 2: Yeah, I guess there's a trap and looking at the
• 25:29
  Speaker 2: home that you want to end up and going oh,
• 25:31
  Speaker 2: that's just far too expensive. I can't imagine ef you're
• 25:36
  Speaker 2: getting there, right, So you've got to get started.
• 25:39
  Speaker 1: I think so and I think about my own personal
• 25:42
  Speaker 1: situation as well. I don't think you should always going
• 25:45
  Speaker 1: to be wanting something different. And maybe the kids are
• 25:48
  Speaker 1: left home, maybe there's a new addition to the family.
• 25:52
  Speaker 1: All these things will naturally change what you'll look for
• 25:56
  Speaker 1: in a home. So don't try and second guess your
• 25:59
  Speaker 1: own self in five years time. Yeah, I think as
• 26:01
  Speaker 1: I say, as long as you are as long as
• 26:03
  Speaker 1: you can afford it, and I mean to afford out
• 26:05
  Speaker 1: of your out of your current salary or your family income.
• 26:10
  Speaker 1: That's what we're looking for, not going, oh if this
• 26:13
  Speaker 1: year we do this in this Yeah, that's the pitfall.
• 26:15
  Speaker 3: I think we're gonnall stay clear.
• 26:16
  Speaker 2: Well. One of one of the things I always think is,
• 26:18
  Speaker 2: you know, a marker of the very wealthy and the
• 26:21
  Speaker 2: people who are successful in business is actually acting. I mean,
• 26:26
  Speaker 2: you know, actually doing the thing. Because we spend a
• 26:28
  Speaker 2: lot of time talking about it and thinking about it,
• 26:30
  Speaker 2: but at some point you have to just get out
• 26:32
  Speaker 2: there and do it. I suppose is it to some people?
• 26:35
  Speaker 2: It might even be daunting just just the very process.
• 26:38
  Speaker 2: I mean, does Baileys and real estate agents sort of
• 26:41
  Speaker 2: open to just talking to people and get explaining how
• 26:45
  Speaker 2: the paperwork and all that sort of stuff can be
• 26:47
  Speaker 2: quite daunting, of.
• 26:49
  Speaker 3: Course it can.
• 26:49
  Speaker 1: And as we said, it's the biggest decision that someone
• 26:52
  Speaker 1: will ever make in their life. So we like to
• 26:55
  Speaker 1: get alongside people early, and we sort of talk about
• 26:59
  Speaker 1: it as match fatter.
• 27:00
  Speaker 3: I seem to have a lot of sports references.
• 27:01
  Speaker 1: But you know, we will take someone along to an
• 27:05
  Speaker 1: auction that the property they're not interested in, but just.
• 27:09
  Speaker 3: To go and sit in the room and go, hey, hey,
• 27:11
  Speaker 3: this is what's happening. This is the vendor. The auctioneer
• 27:14
  Speaker 3: now is calling for an opening.
• 27:15
  Speaker 1: But this is what that means, you know, this is
• 27:18
  Speaker 1: this is the process that that guy there, he's on
• 27:21
  Speaker 1: the phone to someone betting that they're watching online, and
• 27:25
  Speaker 1: these are the documents that they're going through to set
• 27:27
  Speaker 1: a reserve or to to maybe change terms for a
• 27:32
  Speaker 1: slightly maybe a delay the deposit by two weeks or
• 27:35
  Speaker 1: subject to.
• 27:36
  Speaker 3: Some other term.
• 27:37
  Speaker 1: And as you do that, more and more they gain
• 27:40
  Speaker 1: confidence in the process, which then means they're match fit
• 27:44
  Speaker 1: to buy when their ideal property is there. Yeah, and
• 27:48
  Speaker 1: there's nothing worse than seeing that property and not being ready.
• 27:51
  Speaker 1: Haven't spoken to the bank, haven't got a valiation. Haven't
• 27:55
  Speaker 1: got your ducks in a row because.
• 27:56
  Speaker 2: You might it's going to take your two weeks or
• 27:58
  Speaker 2: something and you might miss it.
• 28:00
  Speaker 3: Spot on, Absolutely, spot on.
• 28:01
  Speaker 2: There, let's move on to our quick fire questions. I
• 28:10
  Speaker 2: know you've you've you've listened to the podcast before, so
• 28:13
  Speaker 2: it won't be too surprising. But what's the poorest you've
• 28:16
  Speaker 2: ever been? A student at Massive University?
• 28:19
  Speaker 1: Yeah, sitting in a five bedroom flat on Ada Street,
• 28:23
  Speaker 1: struggling to avoid forward baked beans from back and save
• 28:26
  Speaker 1: to get through the week.
• 28:27
  Speaker 2: It is so often it's it's it is the experience.
• 28:30
  Speaker 2: But was it valuable to you? Do you think to
• 28:32
  Speaker 2: be that poor?
• 28:33
  Speaker 3: Absolutely? Yeah?
• 28:34
  Speaker 1: Again, I think you appreciate the value of money. I
• 28:38
  Speaker 1: actually talk to someone about the value of money. I
• 28:41
  Speaker 1: actually worked in a student bar alongside Anni moobray rebillionaire,
• 28:47
  Speaker 1: and you know, we both worked as hard as each
• 28:49
  Speaker 1: other to get that they'd be able to afford that
• 28:52
  Speaker 1: drink at the end of the week or that cannon
• 28:54
  Speaker 1: bake beans.
• 28:54
  Speaker 3: So I think the value of being poor, or the
• 28:58
  Speaker 3: value of understanding money is you Yeah.
• 29:00
  Speaker 2: Absolutely. On the flip side of that, when you finally
• 29:04
  Speaker 2: got a bit of money together, had a few paychecks
• 29:07
  Speaker 2: in your pocket. Was there something that you splashed out
• 29:09
  Speaker 2: on to sort of let yourself know that you made
• 29:12
  Speaker 2: it to a certain level.
• 29:14
  Speaker 3: There's one confession that's a bit of a watch guy. Oh.
• 29:17
  Speaker 1: Yes, when there's a nice significant milestone, I've tend to
• 29:23
  Speaker 1: have celebrated by buying a watch.
• 29:26
  Speaker 3: So each watch will have a story behind.
• 29:30
  Speaker 2: And I ask what you're wearing right now?
• 29:32
  Speaker 3: Sure? This is the Cerolic sub Mariner. Yeah.
• 29:36
  Speaker 1: I actually bought this when we moved back from Dubai
• 29:39
  Speaker 1: to New Zealand. So it was that point in my
• 29:42
  Speaker 1: life where I decided to invest in one of these.
• 29:44
  Speaker 2: Yeah, because you know, it's a passion and it's a hobby,
• 29:47
  Speaker 2: but it's actually they are an investment, right, so in
• 29:50
  Speaker 2: some ways probably even compared to a car, is it.
• 29:53
  Speaker 3: Yeah?
• 29:53
  Speaker 1: I got another one for my fortieth from my wife
• 29:57
  Speaker 1: and she said, oh, maybe we should look at you
• 30:00
  Speaker 1: got enough watches, you know what I mean. I said, well,
• 30:02
  Speaker 1: let's come and get them. I'll get them service and
• 30:04
  Speaker 1: we'll actually get evaluation. And then after we left she said, well, okay, no,
• 30:07
  Speaker 1: you can definitely get another one because you make more
• 30:09
  Speaker 1: one off watches than you have off off a bunch
• 30:12
  Speaker 1: of other things.
• 30:13
  Speaker 2: I guess it's much like you know, some people would
• 30:14
  Speaker 2: be out whatever, But yeah, it's very cool. Do you
• 30:18
  Speaker 2: still imagine winning lotto? Or do you buy lotto tickets?
• 30:22
  Speaker 1: This is a little bit of a cidbar. Loto cracks
• 30:24
  Speaker 1: me out right now. People won't buy a ticket to
• 30:28
  Speaker 1: win six million dollars, but they will to thirty.
• 30:30
  Speaker 3: I mean, I don't understand that. And now, you know,
• 30:33
  Speaker 3: I do a lot of game theory and then sometimes
• 30:35
  Speaker 3: get driven down a rabbit hole with it.
• 30:37
  Speaker 1: But it's amazing to think that for that, you know,
• 30:40
  Speaker 1: that twenty four dollars ticket or whatever it is. Someone's
• 30:43
  Speaker 1: happy with a thirty million dollars return, but they're not
• 30:45
  Speaker 1: happy with a six million dollar return, and.
• 30:47
  Speaker 2: There's still these minuscule odds regardless.
• 30:49
  Speaker 1: Yeah, so no, I occasionally will buy a ticket when
• 30:53
  Speaker 1: it's a thirty million dollar jackpot, But no, I think
• 30:57
  Speaker 1: we've got to work hard and pretty more sustainable ways
• 31:00
  Speaker 1: to deliver that.
• 31:01
  Speaker 2: Put your twenty backs a week and a fund for
• 31:04
  Speaker 2: correct you can afford deposit on the house. Yeah we
• 31:09
  Speaker 2: touched on this earlier actually, but just how important money
• 31:12
  Speaker 2: is to you or is it more of a by
• 31:14
  Speaker 2: product of success. I mean what drives you now?
• 31:17
  Speaker 1: I still think it's particularly within our team, within our culture,
• 31:23
  Speaker 1: it's still the success of that transaction. I recently was
• 31:28
  Speaker 1: involved in a deal. It was a lease in christ
• 31:33
  Speaker 1: Church for a car company. The fee, by the time
• 31:38
  Speaker 1: it's split and divided up between the agents and the company,
• 31:43
  Speaker 1: the number would be absolutely nominal. But the excitement to
• 31:47
  Speaker 1: do that deal, to have a happy landlord and a
• 31:50
  Speaker 1: happy tenant was something that still drives me and our
• 31:54
  Speaker 1: team every day.
• 31:55
  Speaker 2: I think it's something that's misunderstood by a lot of
• 31:57
  Speaker 2: New Zealanders when they look at wealthy and secs esful people,
• 32:00
  Speaker 2: particularly in business, that they think it is just everyone
• 32:05
  Speaker 2: I've talked to it is it's almost always that the
• 32:08
  Speaker 2: doing the deal or doing the thing, making the thing happen.
• 32:12
  Speaker 2: And some people it's it's whatever, you know, climbing a mountain,
• 32:15
  Speaker 2: and some people it's business right.
• 32:17
  Speaker 3: Well, it's it all comes back to the customer, you know.
• 32:20
  Speaker 1: I think that for us, we don't have widgets, we
• 32:22
  Speaker 1: don't have a product we've but but seeing that seeing
• 32:26
  Speaker 1: someone give the keys to their new home or to
• 32:29
  Speaker 1: you know, that someone that's been able to achieve some
• 32:32
  Speaker 1: financial freedom by selling an asset. Those things truly do
• 32:36
  Speaker 1: drive you to want to do it more and more.
• 32:38
  Speaker 2: Yeah, look we're bumping up against time. The last sort
• 32:42
  Speaker 2: of question I have is kind of a big one,
• 32:44
  Speaker 2: and and and it's it's that one about you know,
• 32:46
  Speaker 2: when you look at wealth and equality out there, people
• 32:50
  Speaker 2: who are just never going to afford a home. If
• 32:52
  Speaker 2: we could make your prime minister for a day, what's
• 32:54
  Speaker 2: the what's the policy, or what's the thing you'd like
• 32:56
  Speaker 2: to do most, that might might shift the dial there.
• 33:00
  Speaker 1: I think you've got to take it back to real
• 33:02
  Speaker 1: estate because I am there, and that's my game. We
• 33:06
  Speaker 1: need to build more homes right now. Obviously, GI your
• 33:10
  Speaker 1: bill these days is a bit of a bad word.
• 33:12
  Speaker 1: But if we were able to deliver a successful key
• 33:16
  Speaker 1: we build, I think that will change more lives and
• 33:19
  Speaker 1: deliver more value for our country than anything else, whether
• 33:22
  Speaker 1: whether you own it or whether you rent it, or
• 33:25
  Speaker 1: whether you are unfortunate enough to be just living in
• 33:29
  Speaker 1: there because that's your accommodation. I think there's real pride
• 33:33
  Speaker 1: in having your own place to call home. People work
• 33:37
  Speaker 1: harder on community, They work harder to send their kids
• 33:40
  Speaker 1: to school and get educated, They feel a belonging to
• 33:44
  Speaker 1: be a part of something bigger than themselves. So if
• 33:48
  Speaker 1: you could waive that magic wand and deliver that policy,
• 33:51
  Speaker 1: I think that would change New Zealand for the better.
• 33:53
  Speaker 2: I mean, do you think there's a way to get
• 33:55
  Speaker 2: you know, we've seen some progress in the last year
• 33:58
  Speaker 2: or so on affordability, but the risk is, you know,
• 34:02
  Speaker 2: you don't want a dead market. It's no good for anyone.
• 34:05
  Speaker 2: Is there a way to sort of keep house prices
• 34:07
  Speaker 2: sort of relatively subdued so that affordability comes back, but
• 34:11
  Speaker 2: without without you know, from your guys perspective, you want,
• 34:15
  Speaker 2: you need to turn over and you need need people
• 34:16
  Speaker 2: to be confident about the market, right I do.
• 34:20
  Speaker 3: And Housing Minister, Honorable Bishop and co.
• 34:23
  Speaker 1: Might disagree with me on this, but I think supply
• 34:27
  Speaker 1: is just one hundred percent the key in that affordable bracket.
• 34:31
  Speaker 3: Yeah, I don't think it's going to change the pricing
• 34:34
  Speaker 3: over here.
• 34:35
  Speaker 2: Yeah, for for Villa and pons, Bill and we in New.
• 34:38
  Speaker 1: Zealand very quick to talk about I mean, I'm in
• 34:41
  Speaker 1: the game, so I get asked the question a dozen.
• 34:42
  Speaker 3: Times a day, how's the market? Yeah? Which market are
• 34:46
  Speaker 3: you talking about? Yeah?
• 34:47
  Speaker 1: Because I think the three or four million dollar home
• 34:50
  Speaker 1: and rimy era has a different answer than the nine
• 34:53
  Speaker 1: hundred thousand dollars unit at Hobsonville. Yeah, it has a
• 34:56
  Speaker 1: different answer to a apartment in the CBD. So I
• 35:00
  Speaker 1: think just by increasing supply in an affordable market, is
• 35:05
  Speaker 1: it necessarily going to skew the entire new genum real
• 35:08
  Speaker 1: estate market? Yeah, but it will create more opportunities for
• 35:13
  Speaker 1: people to own their own homes.
• 35:14
  Speaker 2: And it does feel like maybe that with you know,
• 35:17
  Speaker 2: signs of progress perhaps so that we could get something
• 35:20
  Speaker 2: rolling with.
• 35:21
  Speaker 1: I think there's a whole other podcast there on that.
• 35:24
  Speaker 1: But look, the macro economics are right. Land has come off,
• 35:31
  Speaker 1: building costs have come off, interest rates are trending down.
• 35:35
  Speaker 1: So if there's a time to buy land and build houses,
• 35:38
  Speaker 1: it's now. Yeah, you know, it's got to be a
• 35:41
  Speaker 1: time where we invest in again. As I said before,
• 35:44
  Speaker 1: stop thinking in these quarterly or these twelve monthly cycles.
• 35:48
  Speaker 1: We need to get a long term vision on delivering supply.
• 35:52
  Speaker 2: And that does come back to some of that long
• 35:54
  Speaker 2: term thinking. So then how do you feel about you know,
• 35:57
  Speaker 2: all the debate about on that demand, you know, taxing
• 36:01
  Speaker 2: capital gains, tax you know, all the things that people
• 36:04
  Speaker 2: sort of see as ways to sort of I guess,
• 36:06
  Speaker 2: subdue the market demand.
• 36:10
  Speaker 3: Yeah, I guess. I guess we're tax will deal with demand.
• 36:13
  Speaker 1: I think, you know, obviously we're obviously we're talking increasing
• 36:16
  Speaker 1: supplies the other way. I'm not against seeing taxes around
• 36:20
  Speaker 1: real estate. I don't know that capital gains tax is
• 36:23
  Speaker 1: the right.
• 36:23
  Speaker 3: Way to go about it.
• 36:25
  Speaker 1: We can look across the ditch at our colleagues in Australia.
• 36:29
  Speaker 1: Obviously there is a stamp duty there, There is a
• 36:32
  Speaker 1: foreign buyers tax there. These are things that have been
• 36:36
  Speaker 1: debated around the last election cycle, and I do think
• 36:40
  Speaker 1: there is an opportunity there, and particularly if we can
• 36:43
  Speaker 1: ring fence that and see that going into housing supply. Yeah,
• 36:47
  Speaker 1: perhaps a stamp duty isn't a bad thing for us
• 36:51
  Speaker 1: to look at introducing over time.
• 36:53
  Speaker 2: Sure, that's brilliant. Lloyd, going to leave it there. Thank
• 36:56
  Speaker 2: you very much for talking.
• 36:57
  Speaker 3: Thank you, Lin, I appreciate it.
• 36:59
  Speaker 2: Kars, Thanks for listening to this episode of Money Talks.
• 37:03
  Speaker 2: If you want to get in touch, drop me a
• 37:05
  Speaker 2: line Liam dot Dan at zme dot co dot nz
• 37:10
  Speaker 2: and you can read more from me at INZIDHERLD dot
• 37:12
  Speaker 2: co dot nz. Thanks to my producer Ethan Sills and
• 37:16
  Speaker 2: sound engineer Lianne MacDonald. Follow Money Talks on iHeartRadio or
• 37:21
  Speaker 2: wherever you get your podcasts, with new episodes available every Thursday.