Hello and welcome along to the property Academy podcast. I'm your host Steve McKnight. And and today on the show. We are going to get talk about our year in review. It's a we've just been reading the one roof property report, which is came out yesterday and it's something up a lot of what's happened in the property Market with in 2019 and Dennis and I have beenSitting here reading through this report and you know pouring over the different pieces of data and thinking about what this all beans. And so what we've done is we've each picked out something in particular that we find really interesting or that we want to talk about and share that with you. So the main thing for me is that with in 2019, we have had so much new regulation come in be introduced or that soon will be introduced. There was a real Reset of kiwi bolt. They dumped that Target. There was a potential capital gains tax that was going to come in and then that got dumped ring-fencing laws came in and we had the loss of tax breaks for investment properties, which meant that many investors who were negatively geared now have to put in an extra third Top-Up of their mortgage to keep that to keep that going. There was also an increase of increased focus on healthy homes. That was the healthy homes legislation and standards. These were started to come in we also At local elections and they've been a whole heap of cuts to the official cash rate. Now. The one thing that I found so interesting in this actually comes back to an article that I saw that might cost King wrote last week or the week before he was saying that despite all of these things the New Zealand property Market is still strong and you know what I kind of agree with them back in 2000 and October 2018 the median property price in New Zealand was just over 500 61k Today, it's up around 607 K. Now what that means is that over despite all of these increases in legislation. We've had foreign buyer bands. We've had restricted migration. We've had the you know, the ring-fencing we've had potential capital gains taxes. We've had all of this uncertainty in the market. We've had increased costs for investors and yet the median house price in New Zealand has increased 8.2% The Kiwi property Market is strong. And that is my Tycho at my key takeaway when I'm reading these reports because we've had so so much coming from the government. So many new ideas being introduced so many things that could potentially impact the New Zealand property market and have an inverse effect on property prices and yet the market is still really strong and I think that comes back to the fact that we've got really strong fundamentals with in New Zealand. We've got a relatively strong economy. We've got good Population growth even though the government has is introducing measures to try and limit net migration. We've still got strong population growth and and a growing population just naturally from from the the growth of families with the New Zealand. And so I think these are this is almost you know, when I'm reading this report thing in gosh so much has happened with in 2019 in the property market and yet you know so many things we have been introduced that could go wrong and yet we've had as such strong growth as an average across the country. I think that's a real really good news story now Dennis you have been reading this report along with me the one roof probably record and tell me what was your biggest takeaway from this? Yes, it's something I found quite interesting was when we looked at first home buyers. So with first home buyers, it's saying they'll always like to compete for affordable stock. So when you think of investors investors also want a deal with Buying a property so quite often they are also looking at affordable stock. Now when I was looking at the what's considered affordable for a first home buyer budget in Auckland, you are looking at 800 to a million now when you looked in other centers when we looked at Christchurch and Dunedin you're looking at 502 or sorry 450 to 500 thousand. So this is where we've also seen the largest. Just increases of investment activity. So along these other areas Auckland Wellington Hamilton the saying that first home buyer activities definitely up. It's a good indication that the market is sort of starting to come out of the slump. So from from a slump is where investors often want to come back into the market and they want to look at buying as you'll see it. We've also got the certainty real market so we know what's happening. We now just need to put a plan behind there and Make sure that we're buying the right stock for our portfolio. Yes. I think that we are definitely seeing more and increase in activity within the property markets. Now, of course, it's always an interesting talking talking about about slumps and property Cycles around the country because these are in fact different markets as well. You know, we're seen Auckland has kind of been in this little slump over the last couple of years we may or we may not be coming out of that depending on what we start to see. In the next couple of a couple of months and years worth of data. My back is that we're probably pick rather is that we're probably going to still be relatively flat in Auckland before before having a another uptick in a couple of years, but we are seeing more activity. We are seeing more first home buyers coming into the market and I remember one of the things that you were saying before we hit the big record button was that it can be a good idea for investors to study what first home buyers are doing. So the reason I was just touching on that is because we're first home buyers are buying that that also limited to a budget. You also have to remember that first home buyers are always going to be emotional with your purchase. So so it is an area that is still of interest and this is often at an affordable house price. So from an investment standpoint, if you're looking Within These centers it's often affordable for an investor as well as just knowing what the budget is where the people want to live in a comfortable living. Because you know that you can put people in a good spot. That's still I guess it ties in with our last podcast of living in these areas that are affordable but also accessible to the city definitely and I think that will probably do more of these ear and reviews as we have more guests before 2019 and we'll talk about more about how to be successful within property investment with in 2020 as we near the new year and as we near January, so I will no doubt be doing one of these. With Andrew as well now, please don't forget to rate review And subscribe to this podcast. It really does help us get the message out to more people and how if you want to learn more about property then why not check out one of our online video courses a particularly good one is our free property investment video course, which is available at oppas Partners dot coder and said that's ope is Partners dot coated in said so you can go there and sign up for that. Thanks for listening to the property Academy podcast. I'm your host Ed McKnight, and I'm going to show and we're going to be back again tomorrow with even more daily strategies tactics and insights to help you get the most out of the New Zealand property Market until next time.
In this episode, we discuss the OneRoof Property Report for the last quarter of 2019. This report sums up how the property market has operated over the last year in New Zealand. Ed's top takeaway is that although the property market has faced so many changes in the last year: Ring-fencing laws changing, the Healthy Homes Act implementation, a potential capital gains tax being introduced and the government's focus on reducing net migration. And yet, despite all this, the median house price in New Zealand still increased by 8,19%. Despite these changes, the market is still resilient and that's because the fundamentals of the NZ property market are still strong  Special guest, Dennis Schipper shares that we're seeing more first home buyers enter the market, which is a great sign that decreased interest rates and the slight relaxation of LVRs (which came out earlier this year) are having an effect. Dennis' top tip is to follow where first home buyers are buying because he sees it as a good sign for future property price growth as families settle into particular areas. As always, if you would like to find out more about property investment in NZ, then check out the Epic Guide to Property Investment in NZ on the Opes Partners website. 