Speaker:

Hey, Jeremy, I love

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that we are going for a

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walk with you right now.

Speaker:

I just find this so

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incredibly appropriate that

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we're talking to you while

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you're going for a walk

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in nature up in Olinda.

Speaker:

It's beautiful.

Speaker:

uh, thanks Amish.

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a nice thing to do.

Speaker:

I do have the joy of

Speaker:

being able to work from

Speaker:

home one day a week.

Speaker:

And that's,

Speaker:

today, Wednesdays.

Speaker:

And um, I generally walk

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up and down the mountain

Speaker:

as I'm taking meetings.

Speaker:

I usually do like a,

Speaker:

110 flights of stairs.

Speaker:

It's good.

Speaker:

So Jeremy, tell us who you

Speaker:

are, because you're quite

Speaker:

well known in the industry.

Speaker:

name's Jeremy McLeod.

Speaker:

I'm a co founder of Breed

Speaker:

Architecture, a co founder

Speaker:

of Nightingale Housing.

Speaker:

I'd also say I'm a co

Speaker:

founder of Goodbye Gas.

Speaker:

It was Ben's idea, but

Speaker:

I helped him raise the

Speaker:

capital to get it started.

Speaker:

I like doing

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important things.

Speaker:

And, as I trained as an

Speaker:

architect, I started to

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realize that wasn't just

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Waiting for the phone

Speaker:

to call and to draw what

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people told me, that they'd

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seen on Grand Designs.

Speaker:

Perhaps there's a,

Speaker:

there's a different

Speaker:

way to do things.

Speaker:

So do you still refer to

Speaker:

yourself as an architect?

Speaker:

Like when people go,

Speaker:

what do you do, do you

Speaker:

say I'm an architect?

Speaker:

yeah, I do.

Speaker:

I think, like anything,

Speaker:

we're all kind of, you

Speaker:

know, we'll get tangled up

Speaker:

in our past and, the legacy

Speaker:

issues of how long it's

Speaker:

taken us to get somewhere

Speaker:

and, our identity gets

Speaker:

tied up with, what we do

Speaker:

rather than who we are.

Speaker:

So, yeah, I do, Matt.

Speaker:

I think, I work so hard.

Speaker:

I am attached

Speaker:

to that title.

Speaker:

I look forward to

Speaker:

spending some more

Speaker:

time with the Buddhist

Speaker:

monk and not needing to

Speaker:

refer to myself as an

Speaker:

architect at some point.

Speaker:

I'll let you know

Speaker:

when I get there.

Speaker:

may call yourself an

Speaker:

architect, but from

Speaker:

my side, like I call

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you an inspiration.

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And I think you and I

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have connected over a

Speaker:

few things over the last

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year or so, and, I feel

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quite privileged, you

Speaker:

know, that you and I have

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connected and, you know,

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you've jumped on some

Speaker:

sustainable bills, Alliance

Speaker:

stuff and, you know, we've

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connected through Ben.

Speaker:

and I don't necessarily

Speaker:

just wanna sit on one

Speaker:

thing today, whether that's

Speaker:

Breathe or Nightingale

Speaker:

or Goodbye gas, you know,

Speaker:

and I really wanna hear

Speaker:

your thoughts around how

Speaker:

are we gonna solve this?

Speaker:

Housing problem that we've

Speaker:

got because Matt and I

Speaker:

have had a chat about it

Speaker:

before and just slapping up

Speaker:

stuff and satellite suburbs

Speaker:

is not the solution.

Speaker:

And I'd like to hear your

Speaker:

side from, you know, this

Speaker:

Nightingale model and

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maybe if you can talk

Speaker:

to the listeners about

Speaker:

what that actually is,

Speaker:

you know, and then how

Speaker:

you're trying to also

Speaker:

solve that problem with

Speaker:

your practice of breathe.

Speaker:

You know, you're also

Speaker:

solving a problem with

Speaker:

electrifying homes as well,

Speaker:

whether that's through

Speaker:

your, your practice or

Speaker:

Nightingale or go by gas.

Speaker:

seems to be lots of

Speaker:

problems out there that

Speaker:

you seem to be trying

Speaker:

to solve a lot of them.

Speaker:

But so, so could you

Speaker:

maybe help our listeners

Speaker:

to try to understand how

Speaker:

you're trying to solve

Speaker:

some of these problems

Speaker:

and where you see the

Speaker:

future of housing?

Speaker:

Yeah, sure.

Speaker:

firstly HamIsh, 20 percent

Speaker:

of my time at Braid is

Speaker:

spent on what, you know,

Speaker:

we call at Braid advocacy.

Speaker:

We started the design

Speaker:

practice with the idea

Speaker:

that we could use design

Speaker:

as a weapon for good.

Speaker:

To kind of, you know,

Speaker:

deliver on issues around

Speaker:

kind of humanity or equity,

Speaker:

but also on sustainability

Speaker:

and climate change.

Speaker:

So I'm, I'm here today,

Speaker:

guys, because, Hamish,

Speaker:

I have been lucky

Speaker:

enough to meet you on

Speaker:

a number of occasions.

Speaker:

And I see what you and

Speaker:

Matt are doing, you know,

Speaker:

in the building industry.

Speaker:

And I see that you, like

Speaker:

me, are fellow travellers.

Speaker:

Not just prepared to sit

Speaker:

there and be directed

Speaker:

by a runaway market

Speaker:

or the status quo, but

Speaker:

you're actually trying

Speaker:

to change things.

Speaker:

So I'm a big supporter

Speaker:

of other people trying to

Speaker:

do big, hard, important

Speaker:

things, like I'm a big

Speaker:

supporter of Yoast Backer,

Speaker:

for example, you know.

Speaker:

He's so idealistic, you

Speaker:

know, it's incredible what

Speaker:

he does, so I just lean

Speaker:

in behind whenever I can.

Speaker:

that's why I'm here

Speaker:

today, because you are the

Speaker:

people doing great things.

Speaker:

And I think that I arrived

Speaker:

at Breathe as a human first

Speaker:

and as an architect second.

Speaker:

So, everything, the way

Speaker:

that I've grown up with

Speaker:

my family is kind of,

Speaker:

you know, Political and

Speaker:

environmental activists,

Speaker:

people who cared about,

Speaker:

their fellow humans, you

Speaker:

know, my dad worked in,

Speaker:

homeless shelters, you

Speaker:

know, he, he took me on

Speaker:

a bus to Canberra with

Speaker:

a whole bunch of social

Speaker:

housing tenants from,

Speaker:

uh, from Footscray To

Speaker:

kind of decry the closing

Speaker:

down of public housing

Speaker:

in Victoria and to lobby

Speaker:

for more public funding.

Speaker:

My parents taught me that

Speaker:

if you want to change

Speaker:

something, then you

Speaker:

need to have a voice.

Speaker:

You need to find

Speaker:

a way to do that.

Speaker:

So, that's the way

Speaker:

that I was brought up.

Speaker:

Do something, or

Speaker:

don't complain.

Speaker:

And then I think secondly

Speaker:

I thought that architecture

Speaker:

for working in the built

Speaker:

environment, given that

Speaker:

that's the biggest emission

Speaker:

sector in the world, so

Speaker:

you know, 37 39 percent

Speaker:

of all carbon comes from

Speaker:

the built environment.

Speaker:

And so that's the

Speaker:

easiest place to win.

Speaker:

And so that's why, I guess

Speaker:

it made sense to me to be

Speaker:

a human trying to do good

Speaker:

at a company called Braid.

Speaker:

I think interestingly

Speaker:

working as an architect,

Speaker:

can sit there and wait

Speaker:

for someone to give

Speaker:

you a brief, or you can

Speaker:

try and help determine

Speaker:

a different outcome.

Speaker:

Interestingly, as an

Speaker:

architect, I felt like

Speaker:

we didn't have enough

Speaker:

agency to be able to

Speaker:

drive different outcomes.

Speaker:

So, then kind of built

Speaker:

a prototype building and

Speaker:

opened up for public tours.

Speaker:

It was called the Commons.

Speaker:

Uh, it was about, this

Speaker:

idea that you could

Speaker:

build sustainability.

Speaker:

community and affordability

Speaker:

simultaneously through

Speaker:

thoughtful holistic

Speaker:

approach of sustainability

Speaker:

of reductionism.

Speaker:

We then went, used that

Speaker:

as a springboard to build

Speaker:

Nightingale One and write

Speaker:

a manifesto about, what

Speaker:

could a different housing

Speaker:

solution look like if

Speaker:

it was based on housing

Speaker:

for people, not profit?

Speaker:

What if you took the

Speaker:

profit motive out?

Speaker:

What would that lead to?

Speaker:

And funnily enough,

Speaker:

it enables you to

Speaker:

build great housing

Speaker:

for people and great

Speaker:

housing for the planet.

Speaker:

But it needs to still

Speaker:

be able to operate in

Speaker:

a capitalist democracy.

Speaker:

So you need it to be

Speaker:

financially robust enough

Speaker:

to be able to pay the

Speaker:

equity and capital partners

Speaker:

and the debt on the bank

Speaker:

and all of those things.

Speaker:

and then Nightingale's kind

Speaker:

of, grown exponentially,

Speaker:

you know, from, you

Speaker:

know, the first building,

Speaker:

Nightingale 1, to, you

Speaker:

know, about 15 completed

Speaker:

buildings over know, 700

Speaker:

apartments, you know,

Speaker:

either, completed or under

Speaker:

construction, another

Speaker:

400 in the pipeline, you

Speaker:

know, and this kind of

Speaker:

growing waiting list of

Speaker:

people that would want

Speaker:

to be involved in that.

Speaker:

So I think that

Speaker:

Nightingale's

Speaker:

been incredible.

Speaker:

And then, we came back to

Speaker:

Breathe, and, You know,

Speaker:

my involvement in Goodbye

Speaker:

Gas really was, you know,

Speaker:

meeting Ben Russell, we

Speaker:

lived together at the

Speaker:

commons, with another

Speaker:

guy called Pete Steele.

Speaker:

Pete Steele was ex Morland

Speaker:

Energy Foundation, Ben

Speaker:

Russell was, you know,

Speaker:

getting into solar and

Speaker:

battery storage, great

Speaker:

sparky, cared about the

Speaker:

planet and just really,

Speaker:

really incredible kind

Speaker:

of attention to detail.

Speaker:

He wanted to start Goodbye

Speaker:

Gas, and I think that,

Speaker:

you know, Pete and I

Speaker:

lent in behind him to

Speaker:

kind of help him do that.

Speaker:

And we're really proud of

Speaker:

that, I think, because,

Speaker:

as an architect, it's

Speaker:

really interesting when we

Speaker:

talk to people constantly

Speaker:

about what's the biggest

Speaker:

impact that anyone can

Speaker:

have, like on a, on a

Speaker:

renovation of their home.

Speaker:

And it's, you know, one is,

Speaker:

Electrifying everything,

Speaker:

and two, is where you

Speaker:

buy your electrons from.

Speaker:

So just educating people

Speaker:

on buying green power.

Speaker:

But interestingly a lot of

Speaker:

people aren't doing that.

Speaker:

And so Goodbye Gas tries

Speaker:

to understand why they are,

Speaker:

what are their barriers

Speaker:

to entry, and how do we

Speaker:

smooth out those barriers.

Speaker:

So, That's, you know,

Speaker:

Goodbye Gas, and again,

Speaker:

, Ben and Marcella, who,

Speaker:

who used to work with me

Speaker:

at Brave, was sick of not

Speaker:

having enough agency as an

Speaker:

architect, believe it or

Speaker:

not, went to go and work

Speaker:

at Goodbye Gas with Ben,

Speaker:

and so, those two are kind

Speaker:

of like the powerhouse

Speaker:

at Goodbye Gas, trying

Speaker:

to electrify everything.

Speaker:

So, that's kind of, three,

Speaker:

I've been, working on

Speaker:

historically, you know,

Speaker:

the question about housing,

Speaker:

my God, in the 50s,

Speaker:

Menzies said it would be

Speaker:

great if every Australian

Speaker:

could own a home.

Speaker:

and so we were built off

Speaker:

this, Helping make that

Speaker:

possible and then I think

Speaker:

in 2000, you know, we saw

Speaker:

changes to capital gains

Speaker:

tax exemptions and Negative

Speaker:

gearing through the Howard

Speaker:

government housing in

Speaker:

this country now, it's

Speaker:

all about an asset and

Speaker:

investment And it's not

Speaker:

about, you know, housing

Speaker:

as a basic human right.

Speaker:

So, I think we need

Speaker:

to ask ourselves as

Speaker:

a society, what do we

Speaker:

want housing to be?

Speaker:

Because if it's just

Speaker:

a tradable I think,

Speaker:

you know, we've got

Speaker:

to, try and fix that.

Speaker:

that's generations

Speaker:

of change and there's

Speaker:

so much that unpack.

Speaker:

I've actually got I've

Speaker:

written like 30 things

Speaker:

down here on my diary

Speaker:

about questions you've

Speaker:

you've things about you've

Speaker:

raised but you make a very

Speaker:

interesting point about

Speaker:

how view our house as an

Speaker:

asset which the hard issue

Speaker:

to remove your thinking

Speaker:

from that is most people

Speaker:

have spent more money

Speaker:

than they're ever going

Speaker:

to have on that house.

Speaker:

Like how do we not

Speaker:

treat it like an asset?

Speaker:

Because everyone wants to

Speaker:

protect their own wealth

Speaker:

at the end of the day.

Speaker:

interestingly, Australia

Speaker:

has very interesting tax

Speaker:

settings internationally.

Speaker:

So, our primary place

Speaker:

of residence, isn't

Speaker:

subject to taxation.

Speaker:

the problem with making,

Speaker:

uh, your primary place

Speaker:

of residence a tax haven,

Speaker:

Is that, whole bunch of

Speaker:

financial planners will

Speaker:

tell you to spend too

Speaker:

much money on a house,

Speaker:

um, to buy a house bigger

Speaker:

than what you need.

Speaker:

In order to get capital

Speaker:

growth, because that's

Speaker:

where you're going

Speaker:

to get your money.

Speaker:

And if you buy a house

Speaker:

for a million dollars

Speaker:

this year and you sell it

Speaker:

for two million dollars

Speaker:

in ten years time, you

Speaker:

don't pay any tax on that.

Speaker:

Whereas if you don't

Speaker:

have a house, and you're

Speaker:

paying rent every day,

Speaker:

and you work at McDonald's

Speaker:

flipping burgers, you

Speaker:

know, you pay tax on every

Speaker:

cent that you earn over

Speaker:

the tax free threshold.

Speaker:

So, it's very interesting

Speaker:

that we're incentivised

Speaker:

to buy bigger houses, but

Speaker:

at the same time, taxation

Speaker:

rules say that, if you rent

Speaker:

out your second bedroom,

Speaker:

so you've been encouraged

Speaker:

to buy a house that's too

Speaker:

big, because you, you get

Speaker:

tax concessions, but if

Speaker:

you rent out your second

Speaker:

bedroom or your third

Speaker:

bedroom or your fourth

Speaker:

bedroom to, a nursing

Speaker:

student as an idea.

Speaker:

You trigger a capital

Speaker:

gains tax problem, which

Speaker:

then dis incentivises

Speaker:

you from using all the

Speaker:

spare rooms in your house.

Speaker:

So, we've got taxation

Speaker:

settings which I think

Speaker:

take the idea of safe

Speaker:

and secure housing to

Speaker:

another level, right?

Speaker:

Where else can you

Speaker:

invest somewhere and

Speaker:

never pay tax on the

Speaker:

profit that you make?

Speaker:

And the issue as well,

Speaker:

it doesn't, like, so

Speaker:

older people, so we'll

Speaker:

use my parents for

Speaker:

example, like they've got

Speaker:

a huge house now that all

Speaker:

the kids have moved out.

Speaker:

Then they're not

Speaker:

incentivized to downsize

Speaker:

because they've got

Speaker:

to go pay stamp duty

Speaker:

on the next property.

Speaker:

so, there's also the double

Speaker:

whammy that people don't

Speaker:

want to move because,

Speaker:

going to pay another tax.

Speaker:

just because one, they

Speaker:

might've earned some money

Speaker:

and they can now move to a

Speaker:

suburb they've started out

Speaker:

and they want to move in

Speaker:

somewhere or vice versa,

Speaker:

but they kind of get

Speaker:

you from all directions.

Speaker:

in, uh, in Vienna, in

Speaker:

Austria, about 70 percent

Speaker:

of housing is owned by the

Speaker:

state, by the city state.

Speaker:

And people rent that, and

Speaker:

that's kind of beautiful,

Speaker:

you know, Four and five

Speaker:

story apartments with great

Speaker:

hydronic heating panels

Speaker:

and parquetry floors.

Speaker:

And so because everyone

Speaker:

can live there for as long

Speaker:

as they want to in great

Speaker:

housing owned by the state.

Speaker:

There's no scarcity model

Speaker:

there, which means people

Speaker:

can live well for as

Speaker:

long as they want to in

Speaker:

secure housing, and they

Speaker:

can invest their money

Speaker:

in impact investment,

Speaker:

in the share market,

Speaker:

in, productive ventures.

Speaker:

in Australia, about 71

Speaker:

percent of people own

Speaker:

homes, and about 30

Speaker:

percent of people don't,

Speaker:

or 29 percent don't.

Speaker:

As long as more people

Speaker:

own homes than don't, the

Speaker:

government is going to

Speaker:

be incentivized to keep

Speaker:

house prices rising, right?

Speaker:

, and so the problem with

Speaker:

everyone owning a home, in

Speaker:

a capitalist marketplace

Speaker:

that would then mean

Speaker:

that there's no scarcity.

Speaker:

So, if it was a, if

Speaker:

we were in a socialist

Speaker:

democracy, we'd say housing

Speaker:

everyone, like in Finland,

Speaker:

a housing first policy.

Speaker:

It's exactly what

Speaker:

we should do.

Speaker:

But here we're at got

Speaker:

these competing interests,

Speaker:

like one is, yes, we want

Speaker:

everyone to be housed, the

Speaker:

other thing is, but I want

Speaker:

my house value to go up.

Speaker:

Do you think that changes

Speaker:

here in Australia or it's

Speaker:

just too ingrained in

Speaker:

us?

Speaker:

No, No, I think we can

Speaker:

definitely change, but I

Speaker:

think that we've got to

Speaker:

actually acknowledge it,

Speaker:

accept it's the truth,

Speaker:

, and then I think the

Speaker:

change takes time, right?

Speaker:

So Alan Kohler has

Speaker:

written a big piece about

Speaker:

this, like it's, going

Speaker:

to take 20 years of non

Speaker:

residential price growth

Speaker:

to actually try to repair

Speaker:

the kind of inflationary

Speaker:

status of house pricing

Speaker:

in Australia, but anyway.

Speaker:

Nightingale, , no

Speaker:

car parking.

Speaker:

massive resistance

Speaker:

from, the property

Speaker:

developer next door.

Speaker:

the interesting thing

Speaker:

is that, what do I

Speaker:

think the resistance

Speaker:

is about car parking?

Speaker:

And I think Matt, it's

Speaker:

just a change, a challenge

Speaker:

to the status quo.

Speaker:

If you want to do anything

Speaker:

that's different from

Speaker:

the past, people will

Speaker:

feel threatened by that

Speaker:

and they can't imagine

Speaker:

a different future.

Speaker:

And so it's been very

Speaker:

interesting for us to see.

Speaker:

People in their 60s and 70s

Speaker:

in Brunswick, for example,

Speaker:

you know, with a really

Speaker:

nice, you know, big house,

Speaker:

uh, with a couple of cars,

Speaker:

Living very comfortably,

Speaker:

they might have bought it

Speaker:

in the 80s for, 50, 000.

Speaker:

Their house is now

Speaker:

worth, you know, 2.

Speaker:

2 million.

Speaker:

And the things that

Speaker:

they get upset about is,

Speaker:

us building a building

Speaker:

next to a train station,

Speaker:

next to a bike path,

Speaker:

next to a bus line,

Speaker:

next to the tram stop.

Speaker:

And not putting cars in it.

Speaker:

Because for them, the

Speaker:

way that they see the

Speaker:

world is the way that

Speaker:

they live, right?

Speaker:

Which is that they

Speaker:

drive everywhere.

Speaker:

And they can't imagine,

Speaker:

the life that my

Speaker:

daughters might lead.

Speaker:

So, Tam and I have

Speaker:

four daughters.

Speaker:

Two of them don't

Speaker:

have a license, never

Speaker:

have, don't drive.

Speaker:

, it's cheaper and more

Speaker:

convenient for them to

Speaker:

use public transport.

Speaker:

Ride, walk, or take an

Speaker:

Uber, or a DD, you know,

Speaker:

so, just live differently.

Speaker:

But, it's a change to the

Speaker:

status quo, and everyone

Speaker:

talks about what are

Speaker:

we going to do, like

Speaker:

everyone wrings their hands

Speaker:

about this one building

Speaker:

without cars, when in 99.

Speaker:

9 percent of all other

Speaker:

buildings have car

Speaker:

parks in them, and

Speaker:

a study by, um, Dr.

Speaker:

Elizabeth Taylor at RMIT,

Speaker:

Uh, which would have been,

Speaker:

what, 2015, showed that

Speaker:

the city of Melbourne had

Speaker:

33, 000, over 33, 000 empty

Speaker:

car spaces in existing

Speaker:

buildings in the city.

Speaker:

So lots of people had paid

Speaker:

for car spaces in their

Speaker:

build, all the carbon went

Speaker:

in to build those things,

Speaker:

but there's been no market

Speaker:

matching between people

Speaker:

who actually have cars and

Speaker:

people buying apartments.

Speaker:

So that was a

Speaker:

bit of a checkmate.

Speaker:

That was like checkmate.

Speaker:

exactly.

Speaker:

And so, and so

Speaker:

since that time.

Speaker:

There's been a

Speaker:

number of apps

Speaker:

or web

Speaker:

platforms that have

Speaker:

been released like, uh,

Speaker:

ParkHound and Spacer that,

Speaker:

match that market, right?

Speaker:

So, someone who's got an

Speaker:

empty car space and someone

Speaker:

who needs a car space, but

Speaker:

doesn't want to buy one in

Speaker:

their apartment or doesn't

Speaker:

have one in the apartment

Speaker:

they're renting in, So then

Speaker:

they can go and rent that.

Speaker:

So it starts to

Speaker:

match the market.

Speaker:

Instead of building more

Speaker:

of something, we use

Speaker:

a sharing economy and

Speaker:

technology to actually

Speaker:

meet people's demands

Speaker:

more evenly and flatten

Speaker:

out the demand curve.

Speaker:

Jeremy, I just want to

Speaker:

circle back to a statistic

Speaker:

you, talked about just

Speaker:

before, which I, on the

Speaker:

outset, thought it was

Speaker:

quite surprisingly high and

Speaker:

that 71 percent of people

Speaker:

in Australia own homes

Speaker:

let's fact check that

Speaker:

in the notes, but

Speaker:

that's my understanding

Speaker:

that 71 percent of

Speaker:

Australians own the

Speaker:

homes that they live in.

Speaker:

that seems

Speaker:

surprisingly high to

Speaker:

me, but I guess I

Speaker:

haven't really ever

Speaker:

thought about it.

Speaker:

Well, well also

Speaker:

that's demographic,

Speaker:

that's demographically

Speaker:

shifted, right?

Speaker:

So, baby boomers, you

Speaker:

know, older people.

Speaker:

Have a much higher

Speaker:

proportion of home

Speaker:

ownership and then people

Speaker:

aged between 25 and 35 have

Speaker:

a much lower percentage

Speaker:

of home ownership.

Speaker:

So

Speaker:

you're pretty much

Speaker:

bang, you're bang,

Speaker:

you're bang on.

Speaker:

With a

Speaker:

statistic.

Speaker:

It's, it's, it's, yeah.

Speaker:

62 point 66.2%.

Speaker:

That, that was actually

Speaker:

gonna be what I was gonna

Speaker:

say next because I feel

Speaker:

as, our baby boomers move

Speaker:

on from this life and,

Speaker:

um, you know, there's

Speaker:

a greater, proportion

Speaker:

of the population.

Speaker:

It is that 30 to 45 sort of

Speaker:

mark that don't own homes.

Speaker:

I wonder if we're

Speaker:

gonna see that bigger

Speaker:

drastically fall.

Speaker:

It has.

Speaker:

So here's the statistics

Speaker:

for you already.

Speaker:

So I'll quickly go for you.

Speaker:

So 30% of households

Speaker:

own outright their home.

Speaker:

So no mortgage, 37%

Speaker:

of households own

Speaker:

it with a

Speaker:

mortgage.

Speaker:

Now, if we compare,

Speaker:

I'm gonna remove Gen Z

Speaker:

for the minute because

Speaker:

they're 1997 to 2012.

Speaker:

They're a

Speaker:

bit younger.

Speaker:

They're probably just

Speaker:

starting to work.

Speaker:

Some of them.

Speaker:

so if we compare

Speaker:

baby boomer, baby

Speaker:

boomers, so 78.

Speaker:

5 percent of them.

Speaker:

Um, and then we'll go

Speaker:

down to Millennials.

Speaker:

They're 65.

Speaker:

7%.

Speaker:

So there's a, there's

Speaker:

a good 13 percent

Speaker:

different

Speaker:

generation.

Speaker:

Gen Z is 24.

Speaker:

3.

Speaker:

I think that's probably a

Speaker:

little bit skewed because

Speaker:

they're probably not old

Speaker:

enough to work

Speaker:

some of them.

Speaker:

you can see that

Speaker:

trend occurring, right?

Speaker:

Because as the cost

Speaker:

of housing increases.

Speaker:

And as the value of

Speaker:

existing housing stock

Speaker:

increases due to scarcity,

Speaker:

that people trying to

Speaker:

enter the housing market,

Speaker:

it becomes increasingly

Speaker:

more difficult for them to

Speaker:

actually access housing.

Speaker:

I feel like Millennials at

Speaker:

the moment are having it

Speaker:

harder than anyone else.

Speaker:

like, we're paying for

Speaker:

all this issue with the

Speaker:

interest rate rises, like,

Speaker:

the thing is, like, so baby

Speaker:

boomers, they're born in,

Speaker:

say, 1946 or 1964, that's

Speaker:

78 percent of

Speaker:

them, own a home.

Speaker:

With all these interest

Speaker:

rate rises, it doesn't

Speaker:

affect them.

Speaker:

they paid off

Speaker:

their 150, 000

Speaker:

house they bought.

Speaker:

it's good for them, right?

Speaker:

Because they've got money

Speaker:

in their term deposits.

Speaker:

So as interest rates go

Speaker:

up, they make more money.

Speaker:

then they spend more money,

Speaker:

leading to inflation.

Speaker:

And the only mechanism

Speaker:

the government has to

Speaker:

try and trim inflation

Speaker:

is to push up interest

Speaker:

rates, which puts more

Speaker:

money in the pocket

Speaker:

of those who own their

Speaker:

houses, and less money in

Speaker:

the pocket of those who

Speaker:

don't own their houses.

Speaker:

Or hit employment.

Speaker:

So therefore, the

Speaker:

people that need to earn

Speaker:

the money, like, the

Speaker:

millennials, and,

Speaker:

like, they're the

Speaker:

ones to get hurt.

Speaker:

it is, a conundrum.

Speaker:

Anyway, we're

Speaker:

not, we're not,

Speaker:

we're a bit off track.

Speaker:

Hamish and I can go down

Speaker:

a rabbit hole very quickly

Speaker:

and just go completely

Speaker:

off track.

Speaker:

don't know what the

Speaker:

solution is, but I

Speaker:

do know that there's

Speaker:

a bit of a problem.

Speaker:

but we know the

Speaker:

solution with housing.

Speaker:

I think it's fair to

Speaker:

say that you've got

Speaker:

a very good idea on

Speaker:

how we can solve it.

Speaker:

that was going to lead to

Speaker:

my, to my next question.

Speaker:

So like, if housing is

Speaker:

a basic human right, for

Speaker:

those that don't know

Speaker:

what the Nightingale model

Speaker:

is, and we've briefly

Speaker:

touched on it, how does

Speaker:

the Nightingale model,

Speaker:

because correct me if

Speaker:

I'm wrong, Jeremy, it's

Speaker:

not just a building, the

Speaker:

Nightingale is a model.

Speaker:

Could you maybe just tell

Speaker:

the listeners like, you

Speaker:

know, very high level,

Speaker:

because I really want

Speaker:

to get someone from

Speaker:

the Nightingale on this

Speaker:

podcast too, to like have

Speaker:

a whole podcast episode

Speaker:

dedicated to it.

Speaker:

But could you just

Speaker:

give the listeners a

Speaker:

bit of a high level

Speaker:

idea of, what

Speaker:

Nightingale is?

Speaker:

It's relatively

Speaker:

straightforward.

Speaker:

It's a triple bottom

Speaker:

line housing model.

Speaker:

So, fundamentally what that

Speaker:

means is that it needs to

Speaker:

be sustainable, and

Speaker:

what does that mean,

Speaker:

how do you measure that?

Speaker:

It's got to be seven

Speaker:

and a half star NatHerz

Speaker:

minimum not five stars.

Speaker:

It's got to be 100

Speaker:

percent electric, and

Speaker:

the building has to buy

Speaker:

100 percent renewables

Speaker:

through an embedded

Speaker:

energy network, which

Speaker:

then saves the residents,

Speaker:

because it bulk buys that

Speaker:

power, and passes on the

Speaker:

wholesale rates of that

Speaker:

power to the residents.

Speaker:

So you get cheaper,

Speaker:

greener power.

Speaker:

In a more efficient

Speaker:

apartment, using

Speaker:

less carbon, costing

Speaker:

you less money.

Speaker:

so the first pillar

Speaker:

is, sustainability.

Speaker:

You know, this triple

Speaker:

bottom line model.

Speaker:

The second model

Speaker:

is about community.

Speaker:

So how do you

Speaker:

deliver on community?

Speaker:

And um, the sustainability

Speaker:

and the community

Speaker:

kind of work together.

Speaker:

So, if you think about

Speaker:

the sustainability of

Speaker:

reductionism, We take

Speaker:

out all the laundries

Speaker:

for example, individual

Speaker:

laundries in every

Speaker:

apartment, and then we

Speaker:

build killer rooftop

Speaker:

laundries, beautiful

Speaker:

rooftop gardens.

Speaker:

And so in an apartment

Speaker:

of you know 25, or a

Speaker:

building of 25 apartments,

Speaker:

there might only be

Speaker:

7 washing machines on

Speaker:

the roof instead of 25.

Speaker:

Everyone gets extra

Speaker:

space in their

Speaker:

apartment, everyone's

Speaker:

apartment costs less.

Speaker:

Everyone doesn't have to

Speaker:

buy their washing machine

Speaker:

so they get to share that,

Speaker:

so the price of their

Speaker:

apartment comes down.

Speaker:

But their amenity increases

Speaker:

because they've got a

Speaker:

killer rooftop laundry,

Speaker:

they've got the choice

Speaker:

of six washing machines

Speaker:

The Miss V, the non toxic

Speaker:

cleaner that works through

Speaker:

the apartments puts in,

Speaker:

e water sanitizer, e

Speaker:

water cleanser in those,

Speaker:

, Laundry, she puts in

Speaker:

bulk by, washing liquid

Speaker:

without phosphates in

Speaker:

it and fabric softener.

Speaker:

So all the residents

Speaker:

get to use that, so

Speaker:

solving sustainability

Speaker:

but also saving

Speaker:

costs simultaneously.

Speaker:

But importantly from a

Speaker:

community perspective

Speaker:

think about it like a well

Speaker:

in an Italian village.

Speaker:

Historically the people

Speaker:

would come together to

Speaker:

do simple tasks, so the

Speaker:

simple act of utility

Speaker:

of doing your laundry.

Speaker:

It brings people together

Speaker:

and a similar goal.

Speaker:

And so what we find is

Speaker:

that people who live

Speaker:

in our buildings, they

Speaker:

kind of, they build

Speaker:

communities faster because

Speaker:

we generally build smaller

Speaker:

buildings like 20, 25,

Speaker:

maybe 40 apartments.

Speaker:

and the people with the

Speaker:

dogs meet each other first,

Speaker:

people with the kids meet

Speaker:

each other second, and

Speaker:

the people who wash their

Speaker:

clothes at the same time

Speaker:

meet each other third.

Speaker:

And then there's other

Speaker:

kind of shared amenities

Speaker:

like a bathhouse.

Speaker:

And a guest house

Speaker:

that, you know, your

Speaker:

friends and family

Speaker:

can come and stay in.

Speaker:

So that you don't need

Speaker:

to buy an apartment

Speaker:

bigger than what

Speaker:

you actually need.

Speaker:

But the community piece

Speaker:

is really kind of,

Speaker:

shared facilities that

Speaker:

everyone can benefit from.

Speaker:

So a great rooftop dining

Speaker:

space, yeah, this shared,

Speaker:

you know, beautiful bath

Speaker:

house and a shared guest

Speaker:

house, which everyone

Speaker:

gets the benefit of.

Speaker:

And then lastly, it's the

Speaker:

sustainable finance, you

Speaker:

know, so how do we source

Speaker:

equity for for the project?

Speaker:

So we source capital

Speaker:

from impact investors.

Speaker:

to take a risk adjusted

Speaker:

return, so a lesser return

Speaker:

on their money, because

Speaker:

it's sustainable and

Speaker:

it's community focused.

Speaker:

And then we deal with

Speaker:

banks that lend money

Speaker:

in to this project that

Speaker:

want to do good as well.

Speaker:

So basically, and then we

Speaker:

sell it without profit.

Speaker:

So whatever the project

Speaker:

costs, that's what we

Speaker:

sell it for and then we

Speaker:

sell it through a ballot.

Speaker:

So rather than just selling

Speaker:

it through an auction

Speaker:

and charging as much as

Speaker:

we can, We set all the

Speaker:

prices to pay back all

Speaker:

of our costs and then we

Speaker:

sell it at that number.

Speaker:

So it doesn't seem to be

Speaker:

rocket science, but um, as

Speaker:

a result, our waiting list

Speaker:

has grown from kind of,

Speaker:

you know, 42 people for the

Speaker:

first building to not even

Speaker:

one, there's now over 29,

Speaker:

000 people on a database.

Speaker:

I'm not saying they all

Speaker:

want to, you know, move

Speaker:

in tomorrow, but you

Speaker:

know, our last ballot

Speaker:

had 25 apartments.

Speaker:

Wow.

Speaker:

So, so you said the

Speaker:

keyword profit there.

Speaker:

How do we then get

Speaker:

other developers

Speaker:

taking on this model?

Speaker:

So it's a win win

Speaker:

situation because to

Speaker:

solve these issues, we

Speaker:

actually need developers.

Speaker:

We need to build houses.

Speaker:

So how do we actually

Speaker:

bring them along for the

Speaker:

ride and be like, Hey,

Speaker:

there's an alternative that

Speaker:

we can still do that.

Speaker:

They make

Speaker:

some money that people get

Speaker:

houses at a lower rate.

Speaker:

Like,

Speaker:

how do we sort of

Speaker:

solve that issue?

Speaker:

Well, I think that,

Speaker:

property development

Speaker:

and construction, it's

Speaker:

all big and hard and

Speaker:

scary and there's risk

Speaker:

associated with it.

Speaker:

So my view on developers

Speaker:

has softened drastically

Speaker:

over the last seven

Speaker:

years as we've tried to

Speaker:

deliver more and more

Speaker:

of these buildings.

Speaker:

So, Matt, I don't think

Speaker:

we necessarily need other

Speaker:

people to do a not for

Speaker:

profit or a charitable

Speaker:

housing organisation.

Speaker:

But I think that

Speaker:

Nightingale can be

Speaker:

used as an opportunity

Speaker:

for evolution in

Speaker:

the housing market.

Speaker:

So, if we can show everyone

Speaker:

that you can do apartments

Speaker:

that are minimum 7.

Speaker:

5 stars, 100 percent

Speaker:

electric, this is how an

Speaker:

embedded energy network

Speaker:

goes, and then we can open

Speaker:

that up for tours, and

Speaker:

share that information

Speaker:

openly, then, ideally, then

Speaker:

we start to see for profit

Speaker:

developers, like Amelieu,

Speaker:

Delivering apartment

Speaker:

buildings that are 7.

Speaker:

5 stars, 100 percent

Speaker:

electric, powered by

Speaker:

100 percent renewables.

Speaker:

You know, they're B Corp

Speaker:

certified now, so they're

Speaker:

for profit, they're doing

Speaker:

great work, they're at

Speaker:

a different place in the

Speaker:

market, but they meet, you

Speaker:

know, all of Niningale's

Speaker:

environmental credentials.

Speaker:

We see Neo Metro, doing 7.

Speaker:

5 stars, 100 percent

Speaker:

electric, 100 percent

Speaker:

renewables now and if you

Speaker:

look at how do you do it

Speaker:

at scale, I mean the work

Speaker:

that Assemble have done

Speaker:

in the last five years has

Speaker:

been incredible, right?

Speaker:

So they, they deliver the

Speaker:

same environmental outcomes

Speaker:

as Nightingale and they're

Speaker:

doing it at scale, largely

Speaker:

as build to rent, using

Speaker:

billions of dollars of

Speaker:

superannuation capital, and

Speaker:

then they win on pricing,

Speaker:

by, doing it at scale.

Speaker:

So they've got about

Speaker:

10, 000 apartments, you

Speaker:

know, in the pipeline.

Speaker:

So that's what looks good

Speaker:

to me, Matt, that the

Speaker:

future, isn't necessarily

Speaker:

not for profit or

Speaker:

charitable, but it's a

Speaker:

bunch of other people

Speaker:

doing interesting things

Speaker:

to try and break the mold.

Speaker:

So the issue we have with

Speaker:

scale is also heights that

Speaker:

from what I understand

Speaker:

the barriers around

Speaker:

councils being like, you

Speaker:

can't build that high.

Speaker:

It's too high where if

Speaker:

you look at model saying,

Speaker:

for example, in Canada.

Speaker:

They will allow you to

Speaker:

build higher if you do

Speaker:

better and bigger things.

Speaker:

So they'll incentivize

Speaker:

you to do more if you

Speaker:

meet a certain criteria.

Speaker:

So for example, that they

Speaker:

might allow you to build

Speaker:

another 5 percent if you

Speaker:

build a passive house.

Speaker:

So we turn this to

Speaker:

certification and

Speaker:

another 5 percent if you

Speaker:

add another section of

Speaker:

social housing.

Speaker:

Is that something that

Speaker:

we, can adopt or is there

Speaker:

other things from other

Speaker:

countries that you've seen

Speaker:

that You

Speaker:

think we just need

Speaker:

to bring here and

Speaker:

bring it here fast?

Speaker:

Well, I think

Speaker:

that what we need from

Speaker:

our planning and planning

Speaker:

rules is certainty.

Speaker:

you know, I think

Speaker:

that there's so much

Speaker:

uncertainty in planning.

Speaker:

So it's a.

Speaker:

Discretionary height limit,

Speaker:

not a maximum height limit.

Speaker:

Which means, what does

Speaker:

that actually mean, right?

Speaker:

So developers are always

Speaker:

going to push against that.

Speaker:

So I think the challenge

Speaker:

with the idea of density

Speaker:

bonuses or height

Speaker:

bonuses is that it starts

Speaker:

to be a game, right?

Speaker:

I think that what we

Speaker:

should actually do is just

Speaker:

provide absolute clarity,

Speaker:

saying, if I'm working

Speaker:

in Sydney as opposed to

Speaker:

Melbourne actually West

Speaker:

Melbourne now has a, has

Speaker:

a structure plan that

Speaker:

includes floor area ratios

Speaker:

or floor space ratios.

Speaker:

So we know exactly what

Speaker:

the floor area ratio is,

Speaker:

so if I'm buying a 1, 000

Speaker:

square metre site with a 3

Speaker:

to 1 ratio, I can build 3,

Speaker:

000 square metres of gross

Speaker:

floor area, that's great, I

Speaker:

know exactly what I can do.

Speaker:

So when I build my

Speaker:

feasibility, I then have to

Speaker:

read the design objectives,

Speaker:

and Matt, if it says the

Speaker:

design objectives are 7.

Speaker:

5 stars, 100 percent

Speaker:

electric, 100 percent

Speaker:

renewables, that's good, I

Speaker:

know what I've got to do.

Speaker:

I can build that into

Speaker:

the feasibility, I can

Speaker:

then go and buy the site.

Speaker:

If it says passive

Speaker:

house, that's great.

Speaker:

I can write that in, and

Speaker:

then that's what I can

Speaker:

go and, that will adjust

Speaker:

out the land value and

Speaker:

the feasibility because

Speaker:

at the moment, land in

Speaker:

Australia is speculative.

Speaker:

And, um, when there's not,

Speaker:

uh, very strict planning

Speaker:

controls, and the people

Speaker:

don't know whether they

Speaker:

can build, uh, six storeys

Speaker:

or ten storeys, Often

Speaker:

the person is prepared

Speaker:

to pay for something that

Speaker:

they assume that they

Speaker:

can get 10 stories for.

Speaker:

They'll pay more

Speaker:

for the land.

Speaker:

So the, the

Speaker:

landholder wins.

Speaker:

They get money for not

Speaker:

providing any housing

Speaker:

and then the person

Speaker:

that's bought it is

Speaker:

then committed to trying

Speaker:

to get 10 stories.

Speaker:

Otherwise, they

Speaker:

lose a lot of money.

Speaker:

And it also saves time

Speaker:

from cancels, that there's

Speaker:

no VCAT cases, there's not

Speaker:

as much back and forth,

Speaker:

it's black and white.

Speaker:

yeah, correct.

Speaker:

Like, doesn't it make

Speaker:

life for everyone

Speaker:

so much easier?

Speaker:

absolutely.

Speaker:

And, and if you're a

Speaker:

neighbor, you know,

Speaker:

and you've read the

Speaker:

local structure plan

Speaker:

that says, ah, in this

Speaker:

activity center, it's

Speaker:

going to be six stories.

Speaker:

If you're not comfortable

Speaker:

with that, don't buy

Speaker:

the house, but if that's

Speaker:

there, then that's fine.

Speaker:

You know that it's going

Speaker:

to be six storeys, and

Speaker:

this is, these are the

Speaker:

requirements under the

Speaker:

structure plan, and

Speaker:

then, you've got a lot of

Speaker:

certainty, and you don't

Speaker:

waste time at VCAT or

Speaker:

at Peel's, and the thing

Speaker:

is that in development,

Speaker:

time, is associated

Speaker:

with cost, right?

Speaker:

Because you've got to

Speaker:

borrow capital to build

Speaker:

these things, so the

Speaker:

longer it takes, the

Speaker:

more expensive it is.

Speaker:

I've got a question.

Speaker:

I've just written it

Speaker:

down as I'm reading

Speaker:

through all my notes here.

Speaker:

And I want to ask

Speaker:

you, are you proud of

Speaker:

what you've achieved?

Speaker:

yes, Hamish, I'm

Speaker:

really proud of it.

Speaker:

I'm really proud of it.

Speaker:

I mean, I, you know,

Speaker:

unfortunately, 2020

Speaker:

hindsight is a real pain.

Speaker:

So, I get to see the

Speaker:

things that we could have

Speaker:

done better, or could

Speaker:

have done differently.

Speaker:

So, I also live with a

Speaker:

lot of regret, but no,

Speaker:

I'm incredibly proud

Speaker:

of what I've done.

Speaker:

And my parents, are

Speaker:

proud of me, which

Speaker:

is important to me.

Speaker:

But you don't get there

Speaker:

without those mistakes

Speaker:

though, like you don't

Speaker:

get to where you are.

Speaker:

I was literally just,

Speaker:

about to say that

Speaker:

without that, that 2020

Speaker:

hindsight, it, I would

Speaker:

argue that it wouldn't

Speaker:

then give you the drives.

Speaker:

To do all the other

Speaker:

things that you've done.

Speaker:

I mean, if you didn't

Speaker:

look back on the work that

Speaker:

you've done with Breathe,

Speaker:

then identify a problem

Speaker:

that you wouldn't have

Speaker:

then started Nightingale,

Speaker:

or if you hadn't have made

Speaker:

mistakes with Nightingale

Speaker:

or Breathe, then,

Speaker:

you know, when Mr.

Speaker:

Hanson, Ben

Speaker:

Russell came up to you and

Speaker:

said, Hey, I've got this

Speaker:

idea, you might not have.

Speaker:

Jumped on that and

Speaker:

said, Hey, that's a

Speaker:

fucking great idea.

Speaker:

It's true.

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I think, you know,

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like, we're all

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just human, right?

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So, I think yeah, I think

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that, and it's easy to

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focus on the things you

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got wrong, like, not

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the stuff you got right.

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And I think that, to be

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totally honest, you know,

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if I had to put it in a

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spreadsheet, Are we 51%?

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Did we, did we have

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51 percent wins?

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Did we have more

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wins than losses?

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And the answer

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is absolutely.

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It's been incredible.

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And um, I'm proud to

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live in Melbourne.

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You know, like it's been

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really tough times, but

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just to look at those other

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companies like Milieu, Neo

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Metro, you know, Assemble,

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they're all, they're

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all born in Melbourne.

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people say to me,

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what's, what's

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happening in Melbourne?

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I'm like, it's a

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particular breed that just.

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Put their shoulder

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to the wheel to

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actually do innovation

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particularly around

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sustainability and housing.

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So it's a good

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city to be in

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totally agree.

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Look, I mean, as I said

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before, at the start of

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episode, you know, I feel

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really privileged that,

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we've connected and that,

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you know, you've said

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some nice things about me

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and Matt and what we're

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doing, because probably

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much like yourself, it is

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hard to sometimes stop and.

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Look at all the things that

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you do and be proud of the

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things that you've done.

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Which is why I asked you

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the question, because

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I feel Matt and I

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probably come from the

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same rug as you is that

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we're always trying to

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innovate and be better,

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and we're very happy to

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talk about all the times

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that we fucked up and learn

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from it and then try and be

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better, which really is the

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genesis of this podcast

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is to try and share all

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the times that we've fucked

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up, get people on that have

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also done that, but

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I've also done really

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amazing things.

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And hopefully collectively

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we can all move forward

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and create a

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better life for

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our kids and

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their kids.

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And

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Hamish I gotta ask, are you

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proud of what you've done?

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I struggle with this

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question because I'm

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one of those people,

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it's like, what's next?

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I always want to be better.

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So, so I, I really

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acknowledge and I'm super

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proud of where I've got to.

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Like, I'm only 35 and I'm

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pretty proud that I'm being

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able to build myself a

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passive house at this age.

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Like, I'm

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very happy and proud

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that me and my wife

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have been able to

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do that.

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But I'm also not

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proud the fact

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that what we're doing

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isn't bigger and better.

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it's really interesting

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right that it shouldn't

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be a hard question for

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you too because you two

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don't have to be on the

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podcast today You don't

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need to be worrying about

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educating other builders.

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You know, you don't need to

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be generous with your IP.

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You could just go and build

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houses that are too big,

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houses that are poorly

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insulated, or are poor

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quality, you know, but have

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an air of luxury around it,

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make your money, buy some

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jet skis, retire early.

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And you two have both

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chosen not to do that.

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So, I think you should

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both be super proud.

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tell you the thing that

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I'm most proud of, I'm

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most proud of my ability

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to make connections with

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people that I feel, sing

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the same hymn sheet as.

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That's what I'm

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most proud of.

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Cause if I look around,

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uh, even to, to the group

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that I train with, which

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includes Ben, two or

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three times a week and the

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connections that we've got

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there, the connections I've

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got with Matt and my other

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quote unquote competitors

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in the industry of us

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trying to band together

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and try and be better

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sustainable bills alliance,

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the connections that

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we've made there and what

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we're trying to do there.

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Yeah.

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That's what I'm

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most proud of.

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The fact that I can

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make a living out of it.

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Well, fuckin happy days,

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high fives all around.

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Yeah,

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yeah

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Do you sometimes just

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wish, Haym, that you

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were just a shit builder

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though,

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and you're just

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like, I don't care?

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like, you're just like,

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aren't there days you're

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just like, fuck, I just

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wish I didn't care?

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no, yeah, but I mean I'm

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glad you guys care and

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it's so good that you're

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generous with your time to

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help educate the industry.

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I love it.

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I'd say you're right

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now, Jeremy, that

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means that means a

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lot coming from you.

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That really does genuinely.

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I could, I could talk to

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you for hours and I can

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listen to you for hours.

Speaker:

And I think you've got

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such amazing ideas and

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you, should be incredibly

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proud of what you've done.

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And I'm genuinely

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excited to.

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continue a friendship

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with you over the, you

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know, the coming years

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and I'm super excited to

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collaborate on more things

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together, whether they be

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panels or discussions

Speaker:

like this.

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So thank you so much.

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And you're so generous

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with your time.

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And I think thank you

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from an industry as well.

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Thank you from everyone.

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Oh, no, thanks.

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Thanks, Matt.

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That's something that

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you probably like, we can

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thank you, but there is

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probably other people who

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don't know how to

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thank you

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For example, those

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who now live in the

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first nightingale,

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like that, that they're

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very thankful for

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their opportunity.

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and for the

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future generation.

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So thank you.

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No, thanks heaps, lads.

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Take care and, uh,

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Hamish, I'll see

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you soon, no doubt.