We may be at a turning point when it comes to property investment. 

Cotality data shows residential property is worth $1.66 trillion and still accounts for more than 50% of all household assets.  

But it also shows property sales and values are largely subdued.  

Chief Property Economist Kelvin Davidson told Kerre Woodham over the last couple of decades, strong capital gains and low interest rates were a big driver for the housing market. 

He says mortgage costs went down and selling provided capital gains as well, but this potentially won't last into the future. 

Davidson says property investment will probably need to be done a little bit differently, focusing on active management and cash flow rather than relying on capital gains.  

LISTEN ABOVE 

We may be at a turning point when it comes to property investment.&nbsp;
Cotality data shows residential property is worth $1.66 trillion and still accounts for more than 50% of all household assets. &nbsp;
But it also shows property sales and values are largely subdued. &nbsp;
Chief Property Economist Kelvin Davidson told Kerre Woodham over the last couple of decades, strong capital gains and low interest rates were a big driver for the housing market.&nbsp;
He says mortgage costs went down and selling provided capital gains as well, but this potentially won't last into the future.&nbsp;
Davidson says property investment will probably need to be done a little bit differently, focusing on active management and cash flow rather than relying on capital gains. &nbsp;
LISTEN ABOVE&nbsp;

Join Kerre Woodham one of New Zealand’s best loved personalities as she dishes up a bold, sharp and energetic show Monday to Friday 9am-12md on Newstalk ZB. News, opinion, analysis, lifestyle and entertainment – we’ve got your morning listening covered.

Kerre Woodham Mornings Podcast

Kelvin Davidson: Cotality Chief Property Economist on how property investment may evolve as the market remains largely subdued

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/88b0c0b0-8bbf-47a3-817d-b4eb00117c84/transcript

A drug that could slow a rare form of lung cancer is out there, but it's not funded by Pharmac and costs around $11,000 a month.

A look at the Givealittle pages out there shows there are drugs that cost a way lot more a month than that one, up to $25,000 a month. 

The ACT Party has proposed an increase the share of the New Zealand health budget spent on medicines by one percentage point every year.

David Seymour, ACT Party leader and Associate Health Minister responsible for Pharmac, joined Kerre Woodham to discuss the plan. 

LISTEN ABOVE

A drug that could slow a rare form of lung cancer is out there, but it's not funded by Pharmac and costs around $11,000 a month.
A look at the Givealittle pages out there shows there are drugs that cost a way lot more a month than that one, up to $25,000 a month.&nbsp;
The ACT Party has proposed an increase the share of the New Zealand health budget spent on medicines by one percentage point every year.
David Seymour, ACT Party leader and Associate Health Minister responsible for Pharmac, joined Kerre Woodham to discuss the plan.&nbsp;
LISTEN ABOVE

David Seymour: Associate Health Minister on expanding drug funding

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/1cbdb7e1-9743-4d8d-ab53-b4f3001c79a1/transcript

What would you do? I've been thinking about this ever since Paul's phone call yesterday. You might have been listening when he rang in. We were talking about the cost of living and how you can make economies and you can get an extra job and you can do all this and all that and try and get through, unless life throws you a curveball.  

And that's exactly what happened to Paul. He and Sandra have been together for 34 years. They have two sons, 18 and 20 They've lived good lives. They've worked hard, they've paid off the house, they've got all their insurances including medical insurance. They've never asked for anything. They've never needed to ask for anything. They've just lived their lives and been your typical Kiwi family. Then out of the blue, Sandra gets diagnosed with lung cancer. She's never smoked. It's a rare genetic condition and this particular lung cancer is a killer. This particular type doesn't respond to the treatments that are available and funded under our public health system, but there is a drug that's available that will slow the progress of the disease.  

So the bad news, you get the diagnosis. The good news, there's a treatment. The bad news, it's not funded by Pharmac. You can buy it on the open market, but you have to come up with $11,000 a month —nearly $4,000 a week— to pay for the drug that will give Sandra more time with her family. They don't have a lot, but they've never needed a lot. They've got their own home, and they've looked after themselves and they've never been on benefits, but where the hell do you come up with nearly $4,000 a week?  

It's not a story that's unique to this couple. If you have a look on the Givealittle pages, there are so many that are dedicated to families desperate to find the money for unfunded drugs that will keep their mum or their dad alive just that little bit longer. For some, there's hope of a cure, for many it's buying time. And it seems so cruel. The diagnosis is bad enough, terminal cancer. Then you're given a lifeline, oh but there is a drug that will keep you well for a lot, lot longer than you can expect or imagine. And then that lifeline evaporates because you find out that it's not funded by Pharmac and if you want it, you're going to have to lose everything.  

It's a real Sophie's choice. You might have to sell the house if you own the house, you might have to sell everything you own, you might have to sacrifice your pride and put yourself out there asking for help from strangers to just buy you that little bit of extra time. If you sell the house, you're going to leave the family without security if the treatment doesn't work. I mean, what an awful, awful situation to be in and an awful, awful conundrum.  

What would you do? And perhaps what are the discussions that you've had within your family? Remember when Herceptin wasn't funded and that seemed to hit younger women particularly. That was a dreadful decision to have to make. And yet Herceptin had very good survival rates, so what do you do?  

I suppose it depends on your circumstances, your age and stage. If you're a parent with young children, I imagine you would fight and you'd fight tooth and nail to get a bit of extra time. Whereas I think, and you never know until you're in that situation, but I think I would let fate take its course. My daughter is an adult now, she's happy, she's settled, she has her own family and that makes a big difference when you're a parent. I've had more than my share of good times, more than my fair share of life, I think I'd probably go rather than use all my KiwiSaver and everything else just to buy me a bit of extra time. But I'm at a different stage.  

There are so many applications before Pharmac at the moment to fund unfunded medicines that have a proven track record. There are so many pharmaceutical companies that want approval to be funded by Pharmac that offer people a lifeline. It just seems so, so cruel that you're given the diagnosis, you're reeling from that, then you're told, oh but we can fix you or we can give you time, but it will cost you $11,000, $16,000, $25,000 a month. Impossible money, monopoly money. I would love to hear your stories and how much more you think should be put into Pharmac to give people a fighting chance. 

What would you do? I've been thinking about this ever since Paul's phone call yesterday. You might have been listening when he rang in. We were talking about the cost of living and how you can make economies and you can get an extra job and you can do all this and all that and try and get through, unless life throws you a curveball. &nbsp;
And that's exactly what happened to Paul. He and Sandra have been together for 34 years. They have two sons, 18 and 20 They've lived good lives. They've worked hard, they've paid off the house, they've got all their insurances including medical insurance. They've never asked for anything. They've never needed to ask for anything. They've just lived their lives and been your typical Kiwi family. Then out of the blue, Sandra gets diagnosed with lung cancer. She's never smoked. It's a rare genetic condition and this particular lung cancer is a killer. This particular type doesn't respond to the treatments that are available and funded under our public health system, but there is a drug that's available that will slow the progress of the disease. &nbsp;
So the bad news, you get the diagnosis. The good news, there's a treatment. The bad news, it's not funded by Pharmac. You can buy it on the open market, but you have to come up with $11,000 a month —nearly $4,000 a week— to pay for the drug that will give Sandra more time with her family. They don't have a lot, but they've never needed a lot. They've got their own home, and they've looked after themselves and they've never been on benefits, but where the hell do you come up with nearly $4,000 a week? &nbsp;
It's not a story that's unique to this couple. If you have a look on the Givealittle pages, there are so many that are dedicated to families desperate to find the money for unfunded drugs that will keep their mum or their dad alive just that little bit longer. For some, there's hope of a cure, for many it's buying time. And it seems so cruel. The diagnosis is bad enough, terminal cancer. Then you're given a lifeline, oh but there is a drug that will keep you well for a lot, lot longer than you can expect or imagine. And then that lifeline evaporates because you find out that it's not funded by Pharmac and if you want it, you're going to have to lose everything. &nbsp;
It's a real Sophie's choice. You might have to sell the house if you own the house, you might have to sell everything you own, you might have to sacrifice your pride and put yourself out there asking for help from strangers to just buy you that little bit of extra time. If you sell the house, you're going to leave the family without security if the treatment doesn't work. I mean, what an awful, awful situation to be in and an awful, awful conundrum. &nbsp;
What would you do? And perhaps what are the discussions that you've had within your family? Remember when Herceptin wasn't funded and that seemed to hit younger women particularly. That was a dreadful decision to have to make. And yet Herceptin had very good survival rates, so what do you do? &nbsp;
I suppose it depends on your circumstances, your age and stage. If you're a parent with young children, I imagine you would fight and you'd fight tooth and nail to get a bit of extra time. Whereas I think, and you never know until you're in that situation, but I think I would let fate take its course. My daughter is an adult now, she's happy, she's settled, she has her own family and that makes a big difference when you're a parent. I've had more than my share of good times, more than my fair share of life, I think I'd probably go rather than use all my KiwiSaver and everything else just to buy me a bit of extra time. But I'm at a different stage. &nbsp;
There are so many applications before Pharmac at the moment to fund unfunded medicines that have a proven track record. There are so many pharmaceutical companies that want approval to be funded by Pharmac that offer people a lifeline. It just seems so, so cruel that you're given the diagnosis, you're reeling from that, then you're told, oh but we can fix you or we can give you time, but it will cost you $11,000, $16,000, $25,000 a month. Impossible money, monopoly money. I would love to hear your stories and how much more you think should be put into Pharmac to give people a fighting chance.&nbsp;

Kerre Woodham: What do you do when your lifesaving treatment isn't funded?

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/37a14d05-1260-4c8b-a767-b4f2018a35c8/transcript

There's a story in the New Zealand Herald this morning about a young couple in Hawke's Bay who are earning good coin, above the average between them, but they're barely able to make ends meet. This is the cost of living election – at least that's what the media outlets are telling us. But I don't know if you heard Enda Brady on with Mike this morning. Have a listen to what he had to say around the British budget. 

"People are worried about energy bills, cost of living, food. I went to the petrol station earlier on to get petrol, so I looked at the prices specifically for you, Mike. We are looking at $4.02 a litre for diesel, and I pay $3.52 for unleaded." 

The British Government releasing the budget said they just want to be able to give ordinary working families breathing room. This is a budget for, in the UK, for the immediate future. It's not setting the country up to recover, it's just trying to give your ordinary working family breathing room. Things are tight there and they have been for a while. People are finding out what they can do without and what are necessities. They're doing that here, but they're also doing it around the world.  

Post-Covid and the money printing, nations who went for that strategy are paying the piper and it's grindy. The prices paid for everyday items such as food, energy, transport, and household bills have risen by between 59% and 78% since the year 2000 in France, Italy, Spain, and Portugal. Between 2021 and 2023 prices increased by 12 to 15% in the four countries. Wages didn't keep up and because prices don't fall back once inflation eases, many households are still feeling the squeeze today. It would be the same in the UK as well.  

In Australia, one in three households are going hungry as the cost of living crisis bites, according to a charity. Many people are reducing meal portions to make ends meet and they're being forced to cut the use of shampoo, toothpaste, and soap. Really cutting it right back down. In Australia, inflation data to be released this week is expected to confirm ongoing price pressures for household essentials, prompting a further interest rate hike from the Reserve Bank when it meets at the start of next month. The biggest increase in prices over the past year has been in petrol, up by almost 14%, but steep lifts in other essentials that Aussies consider their own, like beef 9.4%, lamb 10.1%, milk 8%. Sound familiar?  

Is there anywhere in the world that is doing just fine? I know we have a number of listeners who listen from various points of the globe. Is this the same story where you are? Are governments really finding it tough to meet their obligations, to meet their commitments, to look after those citizens who are not doing well, trying to find jobs for young ones? Again, Enda Brady referred to that in the UK – they've got more than a million young people who aren't in education, training, or jobs. People are really struggling to pay the basic household bills. Same in Europe, same in Australia.  

Doesn't make you feel any better, I suppose, if you're wondering how the hell you're going to pay the household rates, but this is not particular or peculiar to New Zealand. Economies are correcting and contractions, as at least half the population knows, are painful. There are signs that things are getting better globally. A lot of it will be dependent on the situation in the US, Iran, Israel, and that calming down. But even above and beyond that, there are signs things are getting better. Xero reported more business confidence, more sales, more employment, more jobs advertised and people employed. And this has been, this wasn't a blip in the data, this has been ongoing. So things are slowly, slowly improving.  

But in the meantime, in your house, what are you doing without? What have you found is a non-essential just to get by until things improve? Insurances, have you kept all the insurances? A young family I know who should be doing just fine, they concede that as much as anyone, but it's the power, it's the rates, it's the insurance, it's all those. They gave up their pet insurance and what does Sod's Law say? Sod's Law says the moment you do that, in their case I think it was a week, a week after doing that their beautiful cat who had never had a moment's ill health in her long and happy life needed emergency vet care and it was $750 for the first night and rising, it will be a bill that will be big. And of course that's what happens when you give up the insurance.   

Are there insurances you've given up? Are there gym memberships you've sacrificed and you're going online? Are, you know, what is it that you have done to tide you over until things do in fact get better and you see that reflected in the prices you're paying and the wage that you're earning? What have you not been able to afford to give up?  What have you decided to commit to and keep? We were discussing this in the office and a couple of the women said hairdos, getting the hair done, getting the hair coloured, cut, treated, $300 to $400 every eight to nine weeks. They're trying to push it out a bit longer. They're saying no, happy to give up going for a night out if it means we can get the hair done.  

Do you see things getting better? Xero sounded a voice of optimism, a voice of hope going into 2027. I'm not even going to come up with a silly little motto after "Thrive in '25" turned out to be such a dud. Let's not do that again. But do you see things getting better and have you found that you can live without a number of things you thought were absolutely essential? Love to hear what's going on in your house and if you're any of our listeners from around the world, I'd love to hear what it's like where you are. Is it the same story repeated in many languages, in many countries right around the world? 

There's a story in the New Zealand Herald this morning about a young couple in Hawke's Bay who are earning good coin, above the average between them, but they're barely able to make ends meet. This is the cost of living election – at least that's what the media outlets are telling us. But I don't know if you heard Enda Brady on with Mike this morning. Have a listen to what he had to say around the British budget.&nbsp;
"People are worried about energy bills, cost of living, food. I went to the petrol station earlier on to get petrol, so I looked at the prices specifically for you, Mike. We are looking at $4.02 a litre for diesel, and I pay $3.52 for unleaded."&nbsp;
The British Government releasing the budget said they just want to be able to give ordinary working families breathing room. This is a budget for, in the UK, for the immediate future. It's not setting the country up to recover, it's just trying to give your ordinary working family breathing room. Things are tight there and they have been for a while. People are finding out what they can do without and what are necessities. They're doing that here, but they're also doing it around the world. &nbsp;
Post-Covid and the money printing, nations who went for that strategy are paying the piper and it's grindy. The prices paid for everyday items such as food, energy, transport, and household bills have risen by between 59% and 78% since the year 2000 in France, Italy, Spain, and Portugal. Between 2021 and 2023 prices increased by 12 to 15% in the four countries. Wages didn't keep up and because prices don't fall back once inflation eases, many households are still feeling the squeeze today. It would be the same in the UK as well. &nbsp;
In Australia, one in three households are going hungry as the cost of living crisis bites, according to a charity. Many people are reducing meal portions to make ends meet and they're being forced to cut the use of shampoo, toothpaste, and soap. Really cutting it right back down. In Australia, inflation data to be released this week is expected to confirm ongoing price pressures for household essentials, prompting a further interest rate hike from the Reserve Bank when it meets at the start of next month. The biggest increase in prices over the past year has been in petrol, up by almost 14%, but steep lifts in other essentials that Aussies consider their own, like beef 9.4%, lamb 10.1%, milk 8%. Sound familiar? &nbsp;
Is there anywhere in the world that is doing just fine? I know we have a number of listeners who listen from various points of the globe. Is this the same story where you are? Are governments really finding it tough to meet their obligations, to meet their commitments, to look after those citizens who are not doing well, trying to find jobs for young ones? Again, Enda Brady referred to that in the UK – they've got more than a million young people who aren't in education, training, or jobs. People are really struggling to pay the basic household bills. Same in Europe, same in Australia. &nbsp;
Doesn't make you feel any better, I suppose, if you're wondering how the hell you're going to pay the household rates, but this is not particular or peculiar to New Zealand. Economies are correcting and contractions, as at least half the population knows, are painful. There are signs that things are getting better globally. A lot of it will be dependent on the situation in the US, Iran, Israel, and that calming down. But even above and beyond that, there are signs things are getting better. Xero reported more business confidence, more sales, more employment, more jobs advertised and people employed. And this has been, this wasn't a blip in the data, this has been ongoing. So things are slowly, slowly improving. &nbsp;
But in the meantime, in your house, what are you doing without? What have you found is a non-essential just to get by until things improve? Insurances, have you kept all the insurances? A young family I know who should be doing just fine, they concede that as much as anyone, but it's the power, it's the rates, it's the insurance, it's all those. They gave up their pet insurance and what does Sod's Law say? Sod's Law says the moment you do that, in their case I think it was a week, a week after doing that their beautiful cat who had never had a moment's ill health in her long and happy life needed emergency vet care and it was $750 for the first night and rising, it will be a bill that will be big. And of course that's what happens when you give up the insurance. &nbsp;&nbsp;
Are there insurances you've given up? Are there gym memberships you've sacrificed and you're going online? Are, you know, what is it that you have done to tide you over until things do in fact get better and you see that reflected in the prices you're paying and the wage that you're earning? What have you not been able to afford to give up? &nbsp;What have you decided to commit to and keep? We were discussing this in the office and a couple of the women said hairdos, getting the hair done, getting the hair coloured, cut, treated, $300 to $400 every eight to nine weeks. They're trying to push it out a bit longer. They're saying no, happy to give up going for a night out if it means we can get the hair done. &nbsp;
Do you see things getting better? Xero sounded a voice of optimism, a voice of hope going into 2027. I'm not even going to come up with a silly little motto after "Thrive in '25" turned out to be such a dud. Let's not do that again. But do you see things getting better and have you found that you can live without a number of things you thought were absolutely essential? Love to hear what's going on in your house and if you're any of our listeners from around the world, I'd love to hear what it's like where you are. Is it the same story repeated in many languages, in many countries right around the world?&nbsp;

Kerre Woodham: Can you see a light at the end of the cost of living tunnel?

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/04e0908c-3492-4659-b998-b4f10176d1a1/transcript

Kelvin Davidson: Cotality Chief Property Economist on how property investment may evolve as the market remains largely subdued

Kerre Woodham Mornings Podcast

In 1 playlist(s)

Kerre Woodham Mornings Podcast

Social links

Follow podcast

Recent clips