Latest / The SME Stream / Debbie Roberts: RBNZ needs to bring OCR down "hard and fast"

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Debbie Roberts: RBNZ needs to bring OCR down "hard and fast" · The SME Stream

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Speaker 4: one Rufredio Show on over one hundred and eighty ten
1:38
Speaker 4: to eighty text nine nine two. And my guest is
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Speaker 4: she is a financial advisor at Property Apprentice and her
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Speaker 4: name is Debbie Roberts. And almost get into the stage
1:49
Speaker 4: where you need an overtroduction, people will recognize your voice, Debbie.
1:51
Speaker 4: Just about I would imagine.
1:53
Speaker 5: Thank you, that's kind, but probably not.
1:55
Speaker 4: How are you anyway?
1:56
Speaker 5: I'm good, I'm good.
1:57
Speaker 4: Yeah, you've been keeping yourself out of mischief.
2:00
Speaker 5: Absolutely. Things are certainly getting busy at the moment.
2:03
Speaker 4: Well, we're going to talk about the OCR because the
2:06
Speaker 4: Reserve Bank has dropped the OCR by fifty basis points.
2:09
Speaker 4: A lot of Now this is for you if you're listening.
2:12
Speaker 4: How far do you want want it need it to fall?
2:15
Speaker 4: And how fast should it fall? There's so many I
2:17
Speaker 4: mean basically should it, could it? Or what do you
2:21
Speaker 4: need it to fall? To the OCR because a lot
2:23
Speaker 4: of commentary I've seen is that we know that Adrian
2:27
Speaker 4: or he was. In fact, I think there was a time,
2:30
Speaker 4: wasn't there, Debbie when he was talking about he might
2:33
Speaker 4: lower it next year, And of course he didn't really
2:36
Speaker 4: realize to de trash the economy so effectively exactly exactly.
2:40
Speaker 5: He was originally talking about not reducing it until maybe
2:43
Speaker 5: middle of next year at one point. But I think,
2:46
Speaker 5: you know, in my opinion, I think he raised it
2:50
Speaker 5: too late and he's reduced it too late. He should
2:54
Speaker 5: have started reducing ages ago. I think, ye, there's a
2:57
Speaker 5: lot of blood in the water at the moment.
3:00
Speaker 4: Which I'm glad to hear you use a dramatic expression
3:03
Speaker 4: like that, because a lot of the time, the language
3:07
Speaker 4: of economics denies the human suffering that goes on when
3:12
Speaker 4: you raise an interest rate, and people if you have
3:15
Speaker 4: to have a mortgage sale, that is a massive, massive
3:20
Speaker 4: toll to take on any individual, and economists use the expression.
3:24
Speaker 4: I think Adrian or used it. I'm not going to
3:26
Speaker 4: pick on him. He's using the language that he's accustomed to.
3:29
Speaker 4: But you know, there's going to be a little bit
3:30
Speaker 4: of pain that we might have. There might be a
3:32
Speaker 4: bit more pain. It's not like someone just you know,
3:35
Speaker 4: injects you with a little bit of pain for a
3:37
Speaker 4: moment where you'll feel some temporary discomfort. This can ruin lives.
3:41
Speaker 5: Yeah, absolutely, and I think potentially the biggest issue at
3:45
Speaker 5: the moment is the pain that the economy is suffering,
3:48
Speaker 5: you know, to be fair, with banks testing affordability at
3:52
Speaker 5: much higher interest rates than they than are currently on offer.
3:56
Speaker 5: That's prevented a lot of people from getting into mortgage
3:59
Speaker 5: g sales. I mean, we saw a lot more mortgage
4:02
Speaker 5: de sales in the Global financial crisis than we've seen
4:05
Speaker 5: this time round because the banks are implementing those high
4:09
Speaker 5: test rates, so they were stress testing everyone before they
4:12
Speaker 5: even signed off the mortgage, which has helped.
4:14
Speaker 4: Is there also have banking practices in the last twenty
4:20
Speaker 4: years or so changed a bit, so.
4:22
Speaker 5: They've changed dramatically.
4:24
Speaker 4: Okay, good, I do remember the black and white section
4:28
Speaker 4: of the property whatever it was that you'd read, and
4:30
Speaker 4: that's the mortgage e sales. It used to be quite thick,
4:34
Speaker 4: and you just observe that there are fewer, so obviously
4:38
Speaker 4: the banks are doing much more to try and protect
4:41
Speaker 4: the interests of their borrowers.
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Speaker 5: Well, I think ever since the Global Financial Crisis, to
4:46
Speaker 5: be fair, all the rules around lending changed quite dramatically,
4:49
Speaker 5: and then with the implementation of the Triple CFA, they
4:52
Speaker 5: changed again. So the rules around lending are definitely starting
4:56
Speaker 5: to relax. So getting lending is starting to get a
5:00
Speaker 5: little bit easier, which is great. The difficulty at the moment,
5:04
Speaker 5: I think, and this is one of the reasons that
5:06
Speaker 5: we're seeing the ocr coming down, is because the economy
5:09
Speaker 5: is struggling, you know, and when the economy struggles, people
5:13
Speaker 5: lose jobs, businesses go into liquidation, you know. So we've
5:17
Speaker 5: essentially been in an economic downturn. We've been in what's
5:22
Speaker 5: the word, I'm looking for a recession for nearly three years.
5:25
Speaker 5: You know. It's been brutal for a lot of people.
5:28
Speaker 4: So, by the way, just so if you have I mean,
5:32
Speaker 4: because sometimes people digest their news infrequently. So the cash
5:36
Speaker 4: rate has been reduced by fifty basis points to four
5:39
Speaker 4: point seventy five percent. A question for you, and Debbie's
5:43
Speaker 4: going to give her view on what she understands it
5:46
Speaker 4: maybe needs to happen, or what the banks also are anticipating,
5:49
Speaker 4: because they spend a lot of time thinking about the
5:51
Speaker 4: stuff and trying to guess what Adrian I was going
5:54
Speaker 4: to do. But the question for you is on e
5:56
Speaker 4: one hundred eighty ten eighty Was that enough? Or do
5:59
Speaker 4: you think that Adrian or needs to do more? Now?
6:04
Speaker 4: So it's been chopped point five of a percent, fifty
6:07
Speaker 4: basis points? Always think basis points? Why they just say
6:10
Speaker 4: half a percent? Anyway, that's the language of economists, I guess.
6:14
Speaker 4: But do they need should it for? Should it be
6:17
Speaker 4: cut further? And will it be cut further? Oh? Eight
6:19
Speaker 4: one hundred and eighty ten eighty? Can give your reckons
6:21
Speaker 4: on that, debbie, What do you reckon?
6:25
Speaker 5: I reckon? So I reckon it absolutely needs to come
6:29
Speaker 5: down further, and I think it needs to come down
6:32
Speaker 5: hard and fast. So a lot of economists are expecting
6:36
Speaker 5: at least a point five reduction in November. Whoa, I know,
6:42
Speaker 5: but that's and that's what the financial markets are factoring
6:44
Speaker 5: in as well. So at least a point five?
6:47
Speaker 4: Why why should it be another point five?
6:49
Speaker 5: And what what the economy is tanking?
6:51
Speaker 4: And what will that? How do what are the economic
6:53
Speaker 4: gears that get pulled when you drop the interest rate?
6:58
Speaker 4: How does that play out?
6:59
Speaker 5: From your PERSPECTI it gives people hope, you know, and.
7:03
Speaker 4: It's just because the cost is it just all because
7:05
Speaker 4: the cost of investing in building and infrastructure and everything,
7:09
Speaker 4: it just gets cheaper, and it means that we can
7:12
Speaker 4: see more action, and that feeds through the rest of
7:14
Speaker 4: the economy, and businesses can borrow cheaper and all that.
7:17
Speaker 5: That's part of it. But I think probably, and I
7:19
Speaker 5: could be wrong here. This is just my personal opinion,
7:22
Speaker 5: but I think the reason that the ocr needs to
7:25
Speaker 5: come down is to give mortgage owners, like people who've
7:28
Speaker 5: got mortgages on their homes, give them some interest rate relief,
7:31
Speaker 5: because then they're going to have more money to spend
7:34
Speaker 5: in the economy. Because it's the businesses that haven't been
7:38
Speaker 5: doing sales that have been struggling, like you know, think restaurants,
7:42
Speaker 5: think luxury items, you know, clothes. People have been spending
7:47
Speaker 5: less on clothes, they've been spending lease on furniture, They've
7:50
Speaker 5: been spending less on things that are seen to be
7:53
Speaker 5: not necessarily essentials but nice to have. So those sort
7:58
Speaker 5: of companies and those into streets have really done it tough.
8:02
Speaker 4: Because for somebody who's got a chunkyish sort of mortgage,
8:07
Speaker 4: I don't know what the average mortgage borrowing would be
8:09
Speaker 4: these days, But if you think of people in the
8:11
Speaker 4: first ten years that they're borrowing, they could have you know,
8:13
Speaker 4: I don't know, five hundred to a million dollars on
8:17
Speaker 4: mortgage come which mone.
8:18
Speaker 5: I don't remember the average mortgage mound. I saw something
8:21
Speaker 5: just a couple of days ago, about half of me.
8:24
Speaker 5: It's about four hundred and eighty thousand I think is
8:27
Speaker 5: the average mortgage for a first home buyer.
8:29
Speaker 4: Because one percent on a half million dollar mortgage, that's
8:33
Speaker 4: what's that five year? Hundred bucks a week about that.
8:37
Speaker 5: So most people in New Zealand at the moment when
8:40
Speaker 5: they're refixing their mortgages, they're either floating or just fixing
8:44
Speaker 5: for six months. So that means and that's quite different
8:47
Speaker 5: to the long term normal, like the long term Norman
8:50
Speaker 5: New Zealand is twelve month fixed rates or two year
8:54
Speaker 5: fixed rates. So that's changed. People are moving towards the
8:58
Speaker 5: shorter term interest rates now because they know that interest
9:01
Speaker 5: rates are on the way down. So you know, people
9:04
Speaker 5: are they're not wanting to fix for longer term, which
9:07
Speaker 5: I think is a smart decision because I do think
9:09
Speaker 5: there is going to be some more reductions and interest rates.
9:12
Speaker 4: What does anyone think that they're I mean, all the
9:15
Speaker 4: banks are trying to do with their longer term borrowing
9:17
Speaker 4: is make it so attractive that people sign up for
9:20
Speaker 4: maybe two or three or four years.
9:23
Speaker 5: The cheapest rates are the four and five year rates
9:25
Speaker 5: at the moment.
9:26
Speaker 4: Which tells you where they think the interest rates are going,
9:28
Speaker 4: which is down.
9:29
Speaker 5: Yeah, exactly, because they want you to fix for long
9:31
Speaker 5: term so you don't refinance to another.
9:33
Speaker 4: Bank, as in my opinion, actually, I guess that must
9:38
Speaker 4: be the only motivation, because yeah, why would they offer
9:40
Speaker 4: cheaper money. It's because they want they want your business
9:42
Speaker 4: for longer.
9:43
Speaker 5: Yeah, and there's some banks that are offering cash backs
9:45
Speaker 5: if you refinance to them, you know, so they're trying
9:49
Speaker 5: to they're trying to get your money. They're trying to
9:51
Speaker 5: get your business. So if they've locked you into a
9:54
Speaker 5: longer term interest rate, you're less likely to refinance to
9:57
Speaker 5: another bank because you have to pay break fees.
9:59
Speaker 4: And my producer Tire has told me that the average
10:03
Speaker 4: first home buyer mortgage it's sort of thinking of people
10:06
Speaker 4: at first home buyers, is five hundred and fifty four
10:08
Speaker 4: thousand dollars off. What did you think it was?
10:11
Speaker 5: I thought it was about four eighty.
10:14
Speaker 4: I think that's a pretty good guess. It was in
10:16
Speaker 4: the vicinity of half a million.
10:18
Speaker 5: I've read a lot of articles this week and I'm
10:20
Speaker 5: sleep deprived.
10:23
Speaker 4: You've been working hard that we want to know. The
10:25
Speaker 4: average owner occupied mortgage is three hundred and nine thousand dollars.
10:30
Speaker 4: So that's on average, which means there'll be people who
10:32
Speaker 4: are lot more than that. I mean, there'll be people
10:33
Speaker 4: who've had comfortably not comfortably. But if you're buying in
10:37
Speaker 4: a market like Auckland and you've got a reasonable disposable
10:39
Speaker 4: income where you want the house you want, you might
10:41
Speaker 4: have a million dollar mortgage plus easily.
10:44
Speaker 5: She would think there's definitely people out there with that
10:47
Speaker 5: sort of mortgage on their home. Whether that's a smart
10:49
Speaker 5: decision or not is a different story.
10:52
Speaker 4: Yes, I know someone who works on the show who's
10:55
Speaker 4: is probably wincing at those words.
10:56
Speaker 5: Actually, well, it depends on your financial.
11:00
Speaker 4: Well because just to paint, but to paint a picture
11:03
Speaker 4: of it. What my memories deserted me on this. But
11:06
Speaker 4: what were people borrowing at at its cheapest? Were there
11:10
Speaker 4: something like two point nine to nine percent mortgages going
11:12
Speaker 4: for a while?
11:13
Speaker 5: Yeah, so that was during COVID, you know, during COVID,
11:16
Speaker 5: the Reserve Bank slashed the OCR and at that point
11:20
Speaker 5: interest rates were two and a half three percent, you know,
11:23
Speaker 5: two and a half to two point nine to nine percent.
11:26
Speaker 5: So a lot of people fixed their mortgages for five
11:29
Speaker 5: years on those cheap interest rates.
11:31
Speaker 4: Very good most absolutely.
11:33
Speaker 5: And you know some of them still haven't come off
11:35
Speaker 5: those low interest rates. Most of them will have come
11:38
Speaker 5: off those low interest rates before the next you know,
11:41
Speaker 5: before the end of the next twelve months, but you
11:44
Speaker 5: know that's going to have quite an impact. I think
11:46
Speaker 5: the important thing to remember is that the average long
11:50
Speaker 5: term interest rate in New Zealand, excluding the period during
11:54
Speaker 5: COVID when things were you know, unusually low, the long
11:58
Speaker 5: term average interest rates six point three five percent.
12:02
Speaker 4: So that also begs the question what is the sort
12:06
Speaker 4: of optimum interest rate that we should expect or I mean,
12:10
Speaker 4: because there's one thing to say, I want interest rates
12:12
Speaker 4: to be four percent or something, but it's not really
12:15
Speaker 4: going to happen, realistically, not likely to get that.
12:17
Speaker 5: Like I mean, interest rates have been trending lower over
12:20
Speaker 5: the last decade or so, so they have definitely been
12:23
Speaker 5: showing a downward trend. Why is that just because I
12:26
Speaker 5: think central banks around the world have been learning. We
12:30
Speaker 5: haven't always had a reserve bank in New Zealand that's
12:32
Speaker 5: controlled things with the OCR in the eighties, did you
12:37
Speaker 5: didn't have twenty percent plus? You know that was before
12:41
Speaker 5: the OCR. So OCR has helped to control interest rates
12:45
Speaker 5: to a certain extent. So yeah, it's not all bad.
12:48
Speaker 4: Yeah, okay, we want your calls. One hundred and eighty ten, eighties.
12:52
Speaker 4: The cash rate has been dropped by zero point five percent,
12:54
Speaker 4: fifty basis points, as they like to say, doesn't need
12:58
Speaker 4: to fall further. And if you want a little bit more context,
13:01
Speaker 4: the interest rates being offered by banks, the variables are
13:06
Speaker 4: around just under eight percent, and if you want to
13:08
Speaker 4: go six months or a year, it's around sort of
13:11
Speaker 4: six and a half ish percent, depending on which your
13:14
Speaker 4: bank is or actually that's if you've got good equity.
13:17
Speaker 4: Either that or you're looking at about seven percent for
13:19
Speaker 4: six months or a year. It gets cheaper and cheaper
13:22
Speaker 4: and cheaper at the further you go out. What do
13:24
Speaker 4: you think it should be? What does it need to
13:26
Speaker 4: fall for you to be able to actually start spending
13:28
Speaker 4: money on anything apart from your mortgage and food? Oh,
13:31
Speaker 4: eight hundred eighty ten eighty text nine two nine two.
13:35
Speaker 4: We'll be back in just a moment. It's coming up
13:36
Speaker 4: to twenty one past four news talks. He'd be.
13:45
Speaker 1: Never seems so good.
13:56
Speaker 4: And welcome back to the one refradio show on the weekend.
13:58
Speaker 4: Collective ten Beverage Make is Debbie Roberts. She's a financial
14:01
Speaker 4: advisor at Property Apprentice. DEBI if people want to get
14:04
Speaker 4: in touch with Property Apprentice, it is Property Apprentice dot
14:07
Speaker 4: co dot NZ. Correct with this relief now, by the way,
14:12
Speaker 4: I have said some text people telling me that my
14:14
Speaker 4: figures are on what the interest rates are. Look, I'm
14:17
Speaker 4: scanning a page of about probably about it one hundred,
14:22
Speaker 4: one hundred and fifty interest rates, and yes there are
14:25
Speaker 4: some cheaper ones for five point seventy five percent or
14:29
Speaker 4: five point sixty nine for two or three year mortgages. Yes,
14:32
Speaker 4: that's right, but they also some of many of those
14:36
Speaker 4: rates are if you've got decent equity. But there is
14:40
Speaker 4: one I think the Asb's offering five point six nine
14:42
Speaker 4: percent for two years. That's actually not a bad deal,
14:44
Speaker 4: is it, Debbie.
14:45
Speaker 5: Yep, there's some pretty good deals out there at the
14:47
Speaker 5: moment for sure.
14:49
Speaker 4: So yeah, what do you think should happened with the
14:50
Speaker 4: OCI should it continue to fall, And we'll talk to
14:53
Speaker 4: Debbi in just a moment about what she knows the
14:54
Speaker 4: banks are planning on, because they'll be thinking ahead on
14:57
Speaker 4: this one for sure.
15:00
Speaker 6: High Hey, they has a going good.
15:03
Speaker 3: Hi.
15:05
Speaker 6: Hey, Yeah, I've got a mortgage bought two years two
15:12
Speaker 6: and a half years ago now, and that was kind
15:15
Speaker 6: of when the indust rates are kind of starting to
15:17
Speaker 6: kind of get up and a little bit of those
15:20
Speaker 6: mid late fives, hot mid six this kind of thing.
15:23
Speaker 6: And yeah, I'm pretty happy with what I was playing.
15:27
Speaker 6: I split my mortgage onto two different rates, and so
15:33
Speaker 6: I think that's one thing that a lot of people
15:35
Speaker 6: don't know that they can do, and I think sometimes
15:38
Speaker 6: some banks don't often tell people that they can do.
15:41
Speaker 6: Is even splitting your mortgage rate, mortgage amount into a
15:45
Speaker 6: couple of amounts and then at least you can take
15:47
Speaker 6: the benefit of long term on part of it, and
15:50
Speaker 6: then you've got some on some on short terms as well.
15:54
Speaker 4: Yeah.
15:54
Speaker 6: Absolutely, of his rate changes and things like that too.
15:58
Speaker 5: Really good strategy. And you know, I think I've read
16:01
Speaker 5: an article recently that said that most New Zealanders don't
16:04
Speaker 5: know that mortgage advisors are free to work with because
16:08
Speaker 5: they get paid by the banks. So like we've always
16:11
Speaker 5: recommended that people work with a mortgage advisor because they
16:14
Speaker 5: essentially work for you even though they get paid by
16:17
Speaker 5: the banks. They work for you and your best interests,
16:20
Speaker 5: and they've got access to over twenty lenders, you know,
16:24
Speaker 5: so they can shop around, get the best deal for
16:27
Speaker 5: you and help advise you on the structure's feet.
16:29
Speaker 4: Lane, did you get your through mortgage advisor? Did you say, Aaron, Well,
16:33
Speaker 4: I had.
16:34
Speaker 6: A friend of mine who's a mortgage broker. Yes, but
16:37
Speaker 6: I've kind of I already have. I had a house
16:40
Speaker 6: about fifteen years ago, originally as my first house when
16:44
Speaker 6: I was about eighteen, and I remember interest from its
16:46
Speaker 6: back then were about eight eight seven eight. But I
16:51
Speaker 6: think people when interest rates were really low, people are like, oh, yeah,
16:57
Speaker 6: my borrowing power is I can spin up to this
16:59
Speaker 6: not They their head and I'm like, okay, so the
17:01
Speaker 6: interest rates are going to be at two percent, now
17:04
Speaker 6: what are they going to be in two or three
17:05
Speaker 6: years time when they come off a fixed rate? And
17:08
Speaker 6: then this is why people freaked out when they were
17:11
Speaker 6: five and six percent coming off their fixed rates were
17:13
Speaker 6: like because over capitalized over mortgaged.
17:18
Speaker 4: I'm glad you mentioned the more that we've talked about
17:20
Speaker 4: the mortgage broker, because we used one when we first.
17:25
Speaker 4: Because I work on a property show and I meet
17:27
Speaker 4: a lot of people. Somebody who introduced me, but I
17:30
Speaker 4: actually wasn't going to initially because I was I don't know,
17:34
Speaker 4: I just had this wasn't it in bills and built prejudice?
17:37
Speaker 4: But I thought, what do I need to go to
17:38
Speaker 4: mortgage advisor or I just go to the banks until
17:41
Speaker 4: somebody gave me good advice and says no, they'll and
17:44
Speaker 4: they'll also do the thinking for you on the way
17:46
Speaker 4: you can structure the mortgage because they do it all
17:48
Speaker 4: the time. And it was, yeah, and.
17:50
Speaker 5: All banks are different, you know, because it depends on
17:53
Speaker 5: your individual situation. You know, some banks are friendlier than
17:56
Speaker 5: others if you're self employed, or if you earn bonuses
17:59
Speaker 5: or missions, and you know, there's so many different variables.
18:03
Speaker 5: So if you go directly to a bank, they're only
18:05
Speaker 5: going to tell you about their stuff. They're not going
18:08
Speaker 5: to say they're not going to say, oh, we can't
18:10
Speaker 5: give you lending. But if you go down the road
18:11
Speaker 5: and see that bank, they'll approve it.
18:14
Speaker 4: Yeah, whereas a.
18:14
Speaker 5: Mortgage advice I can.
18:17
Speaker 6: Yeah, that was really handy with my broker. Was for
18:19
Speaker 6: me coming back into the property after about fifteen years.
18:22
Speaker 6: I was as a first home buyer, So there was
18:26
Speaker 6: the kind of works ins and outs of using kyvsaver.
18:30
Speaker 6: I couldn't use part of my KIVS saver, and they
18:33
Speaker 6: knew banks that would potentially help with with the with
18:38
Speaker 6: the income and that it was a.
18:40
Speaker 4: What do you what do you think is going to happen?
18:42
Speaker 4: What do you think is going to happen with the cash?
18:44
Speaker 6: Right?
18:44
Speaker 4: Do you do you need it to for further for
18:47
Speaker 4: yourself or do you want it to fall further? And
18:49
Speaker 4: do you expect it to fall further?
18:52
Speaker 1: Yes.
18:52
Speaker 6: So, because I had my split rates, I had one
18:54
Speaker 6: for one year and one for two years. So my
18:57
Speaker 6: first year came off at the start of this year
18:59
Speaker 6: was February, and I fixed. I ended up fixing that
19:02
Speaker 6: for five years at five point nine percent. And so
19:09
Speaker 6: my second part, my second half, comes off in February
19:12
Speaker 6: next year. So I'm kind of hoping that dropped quite
19:14
Speaker 6: a bit so that my other half will give them
19:16
Speaker 6: a slow rate.
19:19
Speaker 5: Actually, that's I think that's probably going to be quite
19:22
Speaker 5: good timing if it's coming off in February, because I
19:25
Speaker 5: mean the financial markets are certainly factoring in big drops
19:28
Speaker 5: between now and then.
19:29
Speaker 4: So yeah, good, thanks for call Aaron, Good on your mate. Yes, okay,
19:34
Speaker 4: bye bye. Actually, how many ways can you split your
19:37
Speaker 4: mortgage realistically? Because there would be people who for sure
19:40
Speaker 4: have In fact, I would imagine that most people would
19:44
Speaker 4: have a revolving aspect to their mortgage.
19:47
Speaker 5: Oh you might be surprised. I'd say most people don't.
19:51
Speaker 4: Isn't that funny because I just assumed that that you'd
19:55
Speaker 4: have a revolving one that you would put everything into
19:58
Speaker 4: to try and reduce whatever you had on that or
20:01
Speaker 4: some aspect, even if it's ten twenty thirty thousand, so
20:04
Speaker 4: it's like your living expenses. But if you can be frugal,
20:07
Speaker 4: you can pay that off. Yeah.
20:09
Speaker 5: Credits and off set it wants are a great way
20:11
Speaker 5: to pay your mortgage off faster. But you've got to
20:13
Speaker 5: be pretty good with your money management. Not everyone is,
20:16
Speaker 5: so if someone's not very good with budgeting, it'll be
20:19
Speaker 5: a nightmare.
20:20
Speaker 4: Okay.
20:20
Speaker 5: And also it does affect how much you can borrow
20:24
Speaker 5: because the offset loan and the revolving credit they're on
20:28
Speaker 5: a floating interest rate, so banks test it differently, so
20:32
Speaker 5: it does affect how much you can borrow. So if
20:34
Speaker 5: you're borrowing capacity is pretty limited, then the mortgage advisor
20:37
Speaker 5: would probably suggest not just yet.
20:40
Speaker 4: How many ways can you how many ways can you
20:42
Speaker 4: split your mortgage? Could you go for I want a
20:44
Speaker 4: third on five years, I want another third on three years,
20:47
Speaker 4: and I want another third on you know, one year?
20:51
Speaker 4: Can you do that as many as you want?
20:53
Speaker 5: As far as I'm aware, there's not a restriction at
20:56
Speaker 5: all as to how many different splits you have. It's
20:58
Speaker 5: just how many you want to be managed.
21:00
Speaker 4: So okay, I've just realized that I probably should have
21:04
Speaker 4: split mine a bit more because I just you know,
21:06
Speaker 4: when you get used, this is the thing people will
21:08
Speaker 4: be listening. You think. I'm sortied. This is what I've got.
21:10
Speaker 4: I've got a little bit on revolving, but we've paid
21:12
Speaker 4: off for revolving. We've just got what we've left on
21:14
Speaker 4: a six month because I think that's going to keep falling.
21:17
Speaker 4: And now I think of it, I think, well, I
21:19
Speaker 4: should probably put two thirds of that on the fantastic
21:23
Speaker 4: rate for a couple of years, unless I think it's
21:26
Speaker 4: going to get even cheaper, which.
21:27
Speaker 5: I don't know this is we're having a crystal ball.
21:30
Speaker 5: Would be really handy, wouldn't it.
21:32
Speaker 4: That would be great if I had a dollar.
21:34
Speaker 5: For every time someone said to me, what do you
21:36
Speaker 5: think is going to happen about this?
21:37
Speaker 4: You know, how do you advise people on that? Because
21:39
Speaker 4: you are a financial advisor as well, and obviously you
21:42
Speaker 4: don't give advice to people over the airwaves. It's just
21:45
Speaker 4: general comments. But what do you say when people say
21:48
Speaker 4: what do you think is going to happen? Because you're
21:50
Speaker 4: allowed to say what you think?
21:51
Speaker 5: Yeah, absolutely, And I mean part of that is my job.
21:55
Speaker 5: You know, I've got to give advice based on what
21:57
Speaker 5: we know about what's happening at the moment and best
22:00
Speaker 5: guesses as to what's going to happen moving forward. But
22:04
Speaker 5: you know, this is part of what we do where
22:06
Speaker 5: we live and breed this stuff every day.
22:08
Speaker 4: So well, speaking of those who live and breed the stuff,
22:11
Speaker 4: are the banks, what are they signaling that they think
22:16
Speaker 4: the cash rate's going to do in the next sorttle while.
22:18
Speaker 5: So they're definitely signaling that they think rates are going
22:21
Speaker 5: to come down, and a lot of the banks drop
22:23
Speaker 5: their interest rates before the announcement.
22:26
Speaker 4: Well, that was one of the things. It's like people
22:29
Speaker 4: were holding out for the OCR change and some of
22:32
Speaker 4: the common trail'd had through guests in the studio is like, well,
22:36
Speaker 4: the banks have already priced that in, although it does
22:40
Speaker 4: seem that they've moved a little bit, doesn't it.
22:41
Speaker 5: So the thing, I think it's going to be interesting
22:44
Speaker 5: over the next few months because banks do compete with
22:47
Speaker 5: each other, and when they see one bank reducing rates,
22:51
Speaker 5: they're like, oh, maybe we should start reducing because they
22:53
Speaker 5: don't want to be the one that's higher than everyone else.
22:56
Speaker 5: You know, because people shop around, and especially if they're
22:58
Speaker 5: working with a mortgage, the mortgage advisor knows which banks
23:02
Speaker 5: are offering the best deals at the moment. So yeah, so.
23:06
Speaker 4: What of the So how do the banks signal it
23:09
Speaker 4: that you what? What do you think they're going to
23:12
Speaker 4: go down to? What do you think?
23:14
Speaker 5: I would say just about all of the banks are
23:16
Speaker 5: expecting next month's announcement to be another point five reduction
23:21
Speaker 5: in the OCR at least boomfa. Some of them are
23:23
Speaker 5: expecting point seventy five.
23:26
Speaker 4: Really, I know, wow, I.
23:29
Speaker 5: Know, how cool would that be? Every wrong with the
23:33
Speaker 5: mortgage right now has got their fingers crossed.
23:35
Speaker 4: I mean, everyone has their reckons. You know why I
23:36
Speaker 4: don't think they'll do that is because I think that
23:40
Speaker 4: Adrian or in the back of his mind and his
23:42
Speaker 4: team are still worried about giving inflation a bit more
23:47
Speaker 4: of a nudge, even though we've got it and we're
23:49
Speaker 4: getting it out of control, that they will be nervous
23:52
Speaker 4: about giving too much stimulus because that would be a
23:55
Speaker 4: one point two five percent, which is a lot more
23:58
Speaker 4: money coming back into the economy potentially.
24:01
Speaker 5: So it's all going to depend on the figures that
24:04
Speaker 5: come in. Because we've got what is it is GDP's
24:07
Speaker 5: out next week. I think at the top of my head,
24:10
Speaker 5: I think it's next week, next Wednesday.
24:12
Speaker 4: Okay, Tyra will look at that. We'll get a date
24:14
Speaker 4: for next GDP figures when they next out, Tyra.
24:16
Speaker 5: I literally just talked about that in the event that
24:19
Speaker 5: I just ran at work. I can't remember now, that's
24:21
Speaker 5: all right, brain's shutting down.
24:23
Speaker 4: So we're talking the consensus ism. It sounds like a
24:29
Speaker 4: minimum of point five almost.
24:31
Speaker 5: It seems that that's the way that the markets. Yeah, yeap,
24:35
Speaker 5: so because the OCR announcements every six weeks except for
24:39
Speaker 5: over Christmas. So next month is the last one until February.
24:44
Speaker 5: You know, we don't have another OCR announcement until February
24:47
Speaker 5: after next month. So yeah, And I think when the
24:51
Speaker 5: GDP results come out, if that's showing that the economy
24:54
Speaker 5: is in worse shape than they think it might be,
24:58
Speaker 5: then that increases the chance that things could drop further.
25:02
Speaker 4: Okay, fast the date I've got here. His last one
25:05
Speaker 4: was nineteenth of December for GDP figures. The next one's September.
25:09
Speaker 4: The next one's nineteenth of December.
25:11
Speaker 5: So what's the one that's out next.
25:13
Speaker 4: We'll check it, We'll check. Let's keep it. We haven't
25:17
Speaker 4: got to break it coming up. No, put that phone away,
25:20
Speaker 4: a Multiti if she thinks the Reserve Bank leader knows
25:23
Speaker 4: what he's doing under grant, especially that's from Duncan.
25:26
Speaker 1: Oh.
25:27
Speaker 4: Look, if it was Ashley Church, I know we did
25:30
Speaker 4: say he criticized the hell out of him.
25:32
Speaker 5: But yeah, I mean I think, and I mean it's
25:37
Speaker 5: easy to judge from this side, isn't it. I've not
25:39
Speaker 5: been in his shoes. Hindsight, Yeah, benefit of hindsight. I mean,
25:43
Speaker 5: no one, no one has lived through a global pandemic before,
25:48
Speaker 5: So none of the central bank leaders around the world
25:50
Speaker 5: had lived through a global pandemic before, so I think
25:54
Speaker 5: it was challenging times. In hindsight we can say, I
25:59
Speaker 5: think he took too long to increase them, And in
26:01
Speaker 5: hindsight we can say I think he took too long
26:04
Speaker 5: to start decreasing. But you know, you can only make
26:07
Speaker 5: your decisions on the day and be judged poorly for
26:11
Speaker 5: those decisions further down the track. We've all got the
26:14
Speaker 5: benefit of hindsight. And what's that saying hindsight's always got
26:17
Speaker 5: twenty twenty vision exactly.
26:19
Speaker 4: Yeah, well, yeah, you're right. It is difficult because you
26:23
Speaker 4: just can't put yourself on what we were really saying
26:26
Speaker 4: before he took action.
26:28
Speaker 5: And to be fair, he's not making these decisions on
26:30
Speaker 5: his own, you know, so no one can just blame
26:34
Speaker 5: him for everything, and that we might like to.
26:39
Speaker 4: I think Debbie wants to Tim, what about the well,
26:42
Speaker 4: this is just a question on income for retirees, but
26:44
Speaker 4: what about the poor retiree with money and the MAC
26:46
Speaker 4: relying and topping up his pension with interest from investment
26:50
Speaker 4: well rates.
26:52
Speaker 5: Exactly, when interest rates and savings accounts go down, that
26:55
Speaker 5: does affect people that are living off their interest on
26:57
Speaker 5: their savings, so you know, they've been doing pretty well
27:00
Speaker 5: with the higher interest rates. There's always a flip side,
27:03
Speaker 5: is that text.
27:04
Speaker 4: And it's right in a way though. If there is
27:08
Speaker 4: high interest rates, it means that also it's high inflation.
27:12
Speaker 4: So you might be getting more for your buck, but
27:15
Speaker 4: you're all seving to spend more. So what if the
27:18
Speaker 4: interest rates for that means inflations come down. Does that
27:21
Speaker 4: mean it's not as dramatic as that text sounds.
27:24
Speaker 5: Or I don't no, I think it's I think it's tough.
27:27
Speaker 5: It's tough for retirees that are relying on savings. So
27:31
Speaker 5: you know, this is where key we save is a
27:33
Speaker 5: good idea because you know, and managed funds as well.
27:36
Speaker 5: Managed funds do tend to give a stronger return over
27:39
Speaker 5: the long term than savings accounts. Fixed term deposits at
27:44
Speaker 5: the moment are still pretty good. So you know, if
27:47
Speaker 5: you're looking at getting higher interest rates for the next
27:50
Speaker 5: five years for example long term fixed deposits, it means
27:55
Speaker 5: you By.
27:55
Speaker 4: The way, the announcement you're thinking about, which is sixteenth
27:58
Speaker 4: of October, which is Wednesday, is the inflation announcement.
28:02
Speaker 5: I knew it was one of them. I knew it
28:04
Speaker 5: was one of them. I literally just talked about it.
28:07
Speaker 4: Right, We're going to take a break. You can give
28:09
Speaker 4: us your calls. Where are you happy with the reduction
28:11
Speaker 4: and the interest rate and how much further should it
28:13
Speaker 4: fall with the ocr We're also going to touch on
28:16
Speaker 4: just this bit of news that one person households have
28:18
Speaker 4: increased by one hundred and twenty thousand over the past decade,
28:23
Speaker 4: but only thirty percent of new builds are one or
28:25
Speaker 4: two bedrooms, and begs the question about what sort of
28:29
Speaker 4: property makes the best investment. We'll be having a chat
28:31
Speaker 4: with Debi about that in just a moment. The number
28:34
Speaker 4: is eight hundred and eighty ten eighty text you know
28:37
Speaker 4: the text nineteen nine two. I don't forget standard SEMs
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28:47
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Speaker 4: growing area. Arbor Green will feature a range of green spaces,
29:03
Speaker 4: a new primary school, supermarket, and commercial and retail hub,
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Speaker 4: all connected by safe streets and pathways. Plus at a
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Speaker 4: twenty minute drive from Christchurch City, Arbor Green is perfectly
29:15
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29:21
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29:48
Speaker 7: You get on top of your busy life. Tim Beveridge
29:51
Speaker 7: on the weekend Connective News Talk STB and.
29:54
Speaker 4: My guest is from the Property Apprentice, Debbie Roberts. Debbie,
29:59
Speaker 4: let's just quickly you talk about the top sort of
30:01
Speaker 4: houses that are not being built or the increasing number
30:05
Speaker 4: of people just in one person residences. I mean, is
30:10
Speaker 4: there if you're an investor, I must have met I
30:13
Speaker 4: just sort of think without being an investor, I want
30:16
Speaker 4: definitely three bedrooms minimum. Is that why we're not really
30:19
Speaker 4: building a lot of one in two bedrooms or is
30:21
Speaker 4: there a space for movement there?
30:22
Speaker 5: I think there's definitely space for movement. With the changing demographics.
30:26
Speaker 5: You know, we are seeing more people living alone or
30:29
Speaker 5: just one or two people, and you know, one bedroom
30:32
Speaker 5: properties is more than enough for a lot of people.
30:35
Speaker 5: And it's certainly one way with developers building one and
30:38
Speaker 5: two bedroom properties. It's a way that we're going to
30:42
Speaker 5: see prices getting reasonable for first time buyers. Like first
30:47
Speaker 5: time buyers don't necessarily need a three bedroom house or
30:50
Speaker 5: want one.
30:50
Speaker 4: But of course you're not going to get a house,
30:53
Speaker 4: are you. You're going to be getting a unit or
30:55
Speaker 4: an apartment. Well potentially, I mean who would. I mean,
30:58
Speaker 4: you wouldn't have a piece of land. I've got a
31:00
Speaker 4: house and you just go Now, let's just make it
31:02
Speaker 4: the one bedroom. Thanks, make it a big one. But
31:04
Speaker 4: it's just one exactly.
31:05
Speaker 1: I mean.
31:06
Speaker 5: And this is one of the reasons that the government's
31:08
Speaker 5: looking at introducing the granny flat, you know, the proposal
31:11
Speaker 5: where you can add an extra dwelling.
31:13
Speaker 4: The sixty square meter thing, yeah, exactly, it's a monster.
31:17
Speaker 5: Square meters is a decent size. The first property we
31:20
Speaker 5: purchased was an eighty square meter two bedroom house and
31:23
Speaker 5: we thought it was great. It was on four hundred
31:25
Speaker 5: square meters of land.
31:26
Speaker 4: What are the old workers cottages that Ponsibly used to
31:29
Speaker 4: be before it became the trendy place. They still are
31:32
Speaker 4: sort of that size, but they've just been spruced up
31:35
Speaker 4: a bit.
31:36
Speaker 5: Yeah, I don't know. I think it's good that the
31:38
Speaker 5: developers are starting to make, you know, one in bedroom,
31:41
Speaker 5: one and two bedroom properties because it does give people
31:44
Speaker 5: a bit more choice. You know, not everyone wants to
31:46
Speaker 5: have borders or flatmates well to.
31:49
Speaker 4: Pay off the rent. Of course, you've just made a
31:51
Speaker 4: case for actually having a larger property because well, now
31:54
Speaker 4: for that extra bedroom you've rented out potentially.
31:56
Speaker 5: Yeah, but not everyone wants to do that. So and
31:58
Speaker 5: when it comes to buying and bed smith properties, you
32:01
Speaker 5: need to think about what tenants in the.
32:02
Speaker 4: Area look for.
32:04
Speaker 5: So some areas there's no demand for one and two
32:07
Speaker 5: bedroom properties because they're multi generational families. They want to
32:11
Speaker 5: you know, they want five or six bedroom houses to rent,
32:14
Speaker 5: all properties with a sleepout that you know that adult
32:17
Speaker 5: kids can live in. So it depends on the area
32:20
Speaker 5: that you're investing in. You wouldn't buy a five bedroom
32:23
Speaker 5: house in an area where there was demand for one
32:25
Speaker 5: bedroom and two bedroom properties because.
32:28
Speaker 4: A vice, Because I mean they're still not building a
32:31
Speaker 4: lot of one or two bedroom places, are they. I mean, unless,
32:34
Speaker 4: of course it's retirement villages, which probably specialize in one
32:37
Speaker 4: or two bedrooms.
32:38
Speaker 5: Yeah, there's lots of townhouses that were built in the
32:40
Speaker 5: last couple of years that were one in two bedrooms.
32:43
Speaker 5: So yeah, and in some areas there's an oversupply of
32:46
Speaker 5: those in the rental market now. So you know you
32:49
Speaker 5: do it because a lot of them all came to
32:51
Speaker 5: the market at the same time. They all came at
32:53
Speaker 5: completion at the same time everyone's looking for tenants for
32:56
Speaker 5: one and two bedroom properties. So you do have to
32:59
Speaker 5: actually do some homework before you purchase an investment property.
33:02
Speaker 5: Not every property is a good investment.
33:05
Speaker 4: That actually is quite a good question. We could probably
33:08
Speaker 4: explore an other time as to how much how long
33:10
Speaker 4: it takes you to do your homework on because I mean,
33:13
Speaker 4: homework is a never ending, never any journey really when
33:17
Speaker 4: it comes to understanding what the property market is. But
33:19
Speaker 4: if you were looking for an investment property, how much
33:23
Speaker 4: home would you need to do it's that's probably what's
33:26
Speaker 4: why I've never done it. It just feels endless.
33:29
Speaker 5: It's probably the toughest decision that a new investor has
33:33
Speaker 5: to make, and that's where having some help along that
33:36
Speaker 5: journey can make things a little bit easier, you know.
33:39
Speaker 5: I mean, we've got access to a whole bunch of
33:41
Speaker 5: information that helps people make decisions and based on their
33:46
Speaker 5: financial position and how much they can borrow. There's so
33:50
Speaker 5: many different things that come into it.
33:51
Speaker 4: So by the way that when we're in the document
33:56
Speaker 4: that we put together for the show, and we've just
33:58
Speaker 4: got the summary of things around the Neer of households
34:01
Speaker 4: one hundred and twenty thousand one person households over the
34:05
Speaker 4: past decade, and it says, but only thirty percent of
34:08
Speaker 4: new builds a one or two bedroom. I actually don't
34:10
Speaker 4: mind telling you. I'm surprised that it's as much as
34:12
Speaker 4: thirty percent, because I would have thought that's still the
34:15
Speaker 4: bulk of most construction requirements, unless it's just multi story apartments,
34:19
Speaker 4: I guess, but a lot of the investment would still
34:21
Speaker 4: be in people building three bedroom homes or not all
34:23
Speaker 4: three or four bedroom I don't know.
34:25
Speaker 5: If you look around Auckland and look around christ Church
34:28
Speaker 5: there's a whole bunch of one and two bedroom properties
34:30
Speaker 5: being built.
34:31
Speaker 4: So would you invest in a one or two bedroom property.
34:34
Speaker 5: If there was demand from tenants? There? Absolutely?
34:36
Speaker 4: And how would you work out a first demand from
34:38
Speaker 4: tenants there?
34:39
Speaker 5: Took to a good property manager in the area. They
34:41
Speaker 5: know what people are looking for.
34:43
Speaker 4: I think we might have to save that question about
34:46
Speaker 4: how much homework you need to do because a lot
34:48
Speaker 4: of people who listen to a show like this, you know,
34:51
Speaker 4: there'll be people who've got an active interest in investment,
34:53
Speaker 4: but there are people probably like me, who have thought
34:55
Speaker 4: one need to do it at some stage. You need
34:57
Speaker 4: to do it at some stage, but really haven't got
34:58
Speaker 4: beyond I mean, do a property show every week, but
35:02
Speaker 4: haven't got beyond that sort of skirting around the edges
35:05
Speaker 4: and knowing a little bit about nothing, well a lot
35:08
Speaker 4: about very little bit, you know what I mean? And
35:11
Speaker 4: actually how much due diligence you really need to do
35:14
Speaker 4: on that journey to buying that first investment property.
35:17
Speaker 5: So, I mean, there is quite a few things that
35:20
Speaker 5: you need to check out to make sure that you're
35:22
Speaker 5: not buying a lemon, So like a building inspection, you know,
35:25
Speaker 5: once you've got a property under contract, you've got to
35:28
Speaker 5: do a building inspection. In my opinion, even if it's
35:30
Speaker 5: a new build, get drug tests done. If you're going
35:34
Speaker 5: to rent it out.
35:35
Speaker 4: Well, that's just a checklist on practicality, for getting the money,
35:38
Speaker 4: forgetting the actual whole investment equation and prediction.
35:42
Speaker 5: I mean investing in properties, not rocket science. This is
35:45
Speaker 5: the thing, but it's like most people don't know how
35:47
Speaker 5: to do it because they've never done it before.
35:49
Speaker 4: And that's where a property apprentice comes in, of course. Yeah. Actually,
35:54
Speaker 4: just a few texts before we head the break High
35:56
Speaker 4: to Mike Blackburn, hair, I write, I think it might
36:01
Speaker 4: be wrote I write the Canterbury Construction report. Here in
36:04
Speaker 4: christ Church, approximately seventy percent of all new dwellings consented
36:08
Speaker 4: are smaller multi units, with an average floor size of
36:11
Speaker 4: eighty six square meters. Okay, that's good. I wonder what
36:15
Speaker 4: amongst those smaller units. I keep on thinking it's just
36:18
Speaker 4: retirement villagers. Actually only because I've seen a few retirement
36:22
Speaker 4: villages when I'm down there getting built and I think, gosh,
36:24
Speaker 4: that's expanding.
36:25
Speaker 5: You know, a lot of the new builds have been
36:28
Speaker 5: targeting property investors because you know, with the previous government,
36:33
Speaker 5: obviously new builds had tax benefits for property investors if
36:37
Speaker 5: they were new build versus existing, So that's all changed now,
36:41
Speaker 5: you know, those tax benefits for new build over existing
36:45
Speaker 5: is disappearing quickly. So yeah, these I think things are
36:49
Speaker 5: going to get a lot more stable in the investment market,
36:52
Speaker 5: but certainly some areas have gotten over supply for rental properties.
36:56
Speaker 4: Right, We're going to take quick break, come back and
36:58
Speaker 4: just to take the one roof Property of the week
37:00
Speaker 4: as next it's ten minutes to five news talks.
37:01
Speaker 7: He'd me, honey, you take and welcome back to the
37:27
Speaker 7: Weekend Collective.
37:28
Speaker 4: I'm Tim Beverage. My guest is Debbie Roberts from Property Aprentice.
37:31
Speaker 4: That is Property Apprentice dot co dot nz. Right now
37:35
Speaker 4: it is just gone seven minutes to five the one
37:39
Speaker 4: roof property of the week on the Weekend Collective. Yes,
37:43
Speaker 4: the one roof Property of the week is. They're always gorgeous,
37:46
Speaker 4: so I'm not going to repeat myself it is, so
37:48
Speaker 4: go and have a look for this on the one
37:50
Speaker 4: Roof website One Roof dot co dot Nz. It's thirty
37:54
Speaker 4: three c tidy Mowana Terrace Anakiwa and Marlborough. The asking
37:59
Speaker 4: pro is I mean it's a lot of money, but
38:03
Speaker 4: it's not a lot of money for Auckland people. Nine
38:06
Speaker 4: hundred and thirty thousand dollars although it's one bedroom, one bedroom,
38:12
Speaker 4: one bathroom, two car covered shed, and actually it's the shed.
38:16
Speaker 4: I quite like. It's got a nice collection of firewood
38:19
Speaker 4: in there. It's situated on a prime ridge line overlooking
38:22
Speaker 4: the expanse of un a key area, and it's a
38:25
Speaker 4: charming home offering incredible views down the length of Queen
38:29
Speaker 4: Charlotte sound gorgeous lookout at the completely off grid it
38:33
Speaker 4: property features a new solar power system, clear water septic
38:36
Speaker 4: system and a new backup generator and it's described as
38:40
Speaker 4: being low maintenance ideal for both holiday retreats and permanent living.
38:44
Speaker 4: Probably more off the grid for permanent living than I fancy,
38:47
Speaker 4: but DEBI we share our probably the week with my
38:48
Speaker 4: guess and Debbie Robertson. It is a I mean, picturesque, gorgeous,
38:52
Speaker 4: isn't it beautiful view?
38:53
Speaker 5: And it's on thirty two point four to two hectares,
38:56
Speaker 5: So you know, if you don't want to live in
38:57
Speaker 5: the tiny little house that's there at the moment build something.
39:01
Speaker 4: Yeah, it is gorgeous. Look and obviously the photography is
39:04
Speaker 4: done in a beautiful day. But down to them and
39:06
Speaker 4: the sounds, you just can't beat it. They do have.
39:09
Speaker 4: It looks like a bath that might be heated up,
39:13
Speaker 4: might be heat, might be heated up by fire, one
39:15
Speaker 4: of those things that looks good in the brochure. But
39:16
Speaker 4: I'm not sure I every want to go to the
39:18
Speaker 4: chore of lighting it and boiling myself alive.
39:21
Speaker 5: It looks pretty secluded that bath, though, yes it does.
39:25
Speaker 4: It's just as well because generally when one is in
39:27
Speaker 4: the bath, one is nudies generally. Yes. Anyway, hey, hey
39:32
Speaker 4: did it have a quick text? Somebody's just asking why
39:34
Speaker 4: they still stress testing at nine percent? Any comments on that.
39:37
Speaker 5: Oh, so stress tests are definitely coming down. So most
39:41
Speaker 5: of the banks are now stress testing between eight and
39:43
Speaker 5: eight and a half percent now, so yeah, it's definitely
39:46
Speaker 5: getting easier. But you know, a couple of weeks ago
39:49
Speaker 5: it was eight point five to eight point seventy five
39:53
Speaker 5: stress tests, So yeah, it's definitely definitely coming down.
39:57
Speaker 4: And just once again, by the way, if you if
39:59
Speaker 4: you want to check at that property of one with
40:01
Speaker 4: probably the week. I'm still grazing through the photos a
40:04
Speaker 4: little bit. Thirty three C two Mowana Terrace, Annakiwa, Marlborough
40:08
Speaker 4: and Debbie. Nice to see you. Good to know you're
40:11
Speaker 4: working hard and keeping yourself busy, keeping out of trouble. Yep,
40:15
Speaker 4: we'll catch you again. Okay. If you've missed any of
40:18
Speaker 4: the previous hour discussion about the ocr and smaller dwellings,
40:23
Speaker 4: go and check out the podcast. Look for the Weekend
40:24
Speaker 4: Collective on iHeartRadio. We'll be back very shortly. The Parents
40:28
Speaker 4: Squad Catherine Burkett's with us and how far it's You
40:31
Speaker 4: know the term is starting tomorrow. Kids are going to
40:34
Speaker 4: be into the study pretty soon. Do you need to
40:37
Speaker 4: ride them and nag them to get there, do their
40:39
Speaker 4: homework and their study? You just leave them to make
40:41
Speaker 4: their own mistakes. We'll be talking about that in the
40:43
Speaker 4: Parents Squad very shortly, Newstalks. It'd be