Hey, Jeremy, I love
Speaker:that we are going for a
Speaker:walk with you right now.
Speaker:I just find this so
Speaker:incredibly appropriate that
Speaker:we're talking to you while
Speaker:you're going for a walk
Speaker:in nature up in Olinda.
Speaker:It's beautiful.
Speaker:uh, thanks Amish.
Speaker: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
Speaker: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
Speaker:important things.
Speaker:And, as I trained as an
Speaker:architect, I started to
Speaker:realize that wasn't just
Speaker:Waiting for the phone
Speaker:to call and to draw what
Speaker:people told me, that they'd
Speaker: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
Speaker:you an inspiration.
Speaker:And I think you and I
Speaker:have connected over a
Speaker:few things over the last
Speaker:year or so, and, I feel
Speaker:quite privileged, you
Speaker:know, that you and I have
Speaker:connected and, you know,
Speaker:you've jumped on some
Speaker:sustainable bills, Alliance
Speaker:stuff and, you know, we've
Speaker: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
Speaker: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.
Speaker:I think, you know,
Speaker:like, we're all
Speaker:just human, right?
Speaker:So, I think yeah, I think
Speaker:that, and it's easy to
Speaker:focus on the things you
Speaker:got wrong, like, not
Speaker:the stuff you got right.
Speaker:And I think that, to be
Speaker:totally honest, you know,
Speaker:if I had to put it in a
Speaker:spreadsheet, Are we 51%?
Speaker:Did we, did we have
Speaker:51 percent wins?
Speaker:Did we have more
Speaker:wins than losses?
Speaker:And the answer
Speaker:is absolutely.
Speaker:It's been incredible.
Speaker:And um, I'm proud to
Speaker:live in Melbourne.
Speaker:You know, like it's been
Speaker:really tough times, but
Speaker:just to look at those other
Speaker:companies like Milieu, Neo
Speaker:Metro, you know, Assemble,
Speaker:they're all, they're
Speaker:all born in Melbourne.
Speaker:people say to me,
Speaker:what's, what's
Speaker:happening in Melbourne?
Speaker:I'm like, it's a
Speaker:particular breed that just.
Speaker:Put their shoulder
Speaker:to the wheel to
Speaker:actually do innovation
Speaker:particularly around
Speaker:sustainability and housing.
Speaker:So it's a good
Speaker:city to be in
Speaker:totally agree.
Speaker:Look, I mean, as I said
Speaker:before, at the start of
Speaker:episode, you know, I feel
Speaker:really privileged that,
Speaker:we've connected and that,
Speaker:you know, you've said
Speaker:some nice things about me
Speaker:and Matt and what we're
Speaker:doing, because probably
Speaker:much like yourself, it is
Speaker:hard to sometimes stop and.
Speaker:Look at all the things that
Speaker:you do and be proud of the
Speaker:things that you've done.
Speaker:Which is why I asked you
Speaker:the question, because
Speaker:I feel Matt and I
Speaker:probably come from the
Speaker:same rug as you is that
Speaker:we're always trying to
Speaker:innovate and be better,
Speaker:and we're very happy to
Speaker:talk about all the times
Speaker:that we fucked up and learn
Speaker:from it and then try and be
Speaker:better, which really is the
Speaker:genesis of this podcast
Speaker:is to try and share all
Speaker:the times that we've fucked
Speaker:up, get people on that have
Speaker:also done that, but
Speaker:I've also done really
Speaker:amazing things.
Speaker:And hopefully collectively
Speaker:we can all move forward
Speaker:and create a
Speaker:better life for
Speaker:our kids and
Speaker:their kids.
Speaker:And
Speaker:Hamish I gotta ask, are you
Speaker:proud of what you've done?
Speaker:I struggle with this
Speaker:question because I'm
Speaker:one of those people,
Speaker:it's like, what's next?
Speaker:I always want to be better.
Speaker:So, so I, I really
Speaker:acknowledge and I'm super
Speaker:proud of where I've got to.
Speaker:Like, I'm only 35 and I'm
Speaker:pretty proud that I'm being
Speaker:able to build myself a
Speaker:passive house at this age.
Speaker:Like, I'm
Speaker:very happy and proud
Speaker:that me and my wife
Speaker:have been able to
Speaker:do that.
Speaker:But I'm also not
Speaker:proud the fact
Speaker:that what we're doing
Speaker:isn't bigger and better.
Speaker:it's really interesting
Speaker:right that it shouldn't
Speaker:be a hard question for
Speaker:you too because you two
Speaker:don't have to be on the
Speaker:podcast today You don't
Speaker:need to be worrying about
Speaker:educating other builders.
Speaker:You know, you don't need to
Speaker:be generous with your IP.
Speaker:You could just go and build
Speaker:houses that are too big,
Speaker:houses that are poorly
Speaker:insulated, or are poor
Speaker:quality, you know, but have
Speaker:an air of luxury around it,
Speaker:make your money, buy some
Speaker:jet skis, retire early.
Speaker:And you two have both
Speaker:chosen not to do that.
Speaker:So, I think you should
Speaker:both be super proud.
Speaker:tell you the thing that
Speaker:I'm most proud of, I'm
Speaker:most proud of my ability
Speaker:to make connections with
Speaker:people that I feel, sing
Speaker:the same hymn sheet as.
Speaker:That's what I'm
Speaker:most proud of.
Speaker:Cause if I look around,
Speaker:uh, even to, to the group
Speaker:that I train with, which
Speaker:includes Ben, two or
Speaker:three times a week and the
Speaker:connections that we've got
Speaker:there, the connections I've
Speaker:got with Matt and my other
Speaker:quote unquote competitors
Speaker:in the industry of us
Speaker:trying to band together
Speaker:and try and be better
Speaker:sustainable bills alliance,
Speaker:the connections that
Speaker:we've made there and what
Speaker:we're trying to do there.
Speaker:Yeah.
Speaker:That's what I'm
Speaker:most proud of.
Speaker:The fact that I can
Speaker:make a living out of it.
Speaker:Well, fuckin happy days,
Speaker:high fives all around.
Speaker:Yeah,
Speaker:yeah
Speaker:Do you sometimes just
Speaker:wish, Haym, that you
Speaker:were just a shit builder
Speaker:though,
Speaker:and you're just
Speaker:like, I don't care?
Speaker:like, you're just like,
Speaker:aren't there days you're
Speaker:just like, fuck, I just
Speaker:wish I didn't care?
Speaker:no, yeah, but I mean I'm
Speaker:glad you guys care and
Speaker:it's so good that you're
Speaker:generous with your time to
Speaker:help educate the industry.
Speaker:I love it.
Speaker:I'd say you're right
Speaker:now, Jeremy, that
Speaker:means that means a
Speaker:lot coming from you.
Speaker:That really does genuinely.
Speaker:I could, I could talk to
Speaker:you for hours and I can
Speaker:listen to you for hours.
Speaker:And I think you've got
Speaker:such amazing ideas and
Speaker:you, should be incredibly
Speaker:proud of what you've done.
Speaker:And I'm genuinely
Speaker:excited to.
Speaker:continue a friendship
Speaker:with you over the, you
Speaker:know, the coming years
Speaker:and I'm super excited to
Speaker:collaborate on more things
Speaker:together, whether they be
Speaker:panels or discussions
Speaker:like this.
Speaker:So thank you so much.
Speaker:And you're so generous
Speaker:with your time.
Speaker:And I think thank you
Speaker:from an industry as well.
Speaker:Thank you from everyone.
Speaker:Oh, no, thanks.
Speaker:Thanks, Matt.
Speaker:That's something that
Speaker:you probably like, we can
Speaker:thank you, but there is
Speaker:probably other people who
Speaker:don't know how to
Speaker:thank you
Speaker:For example, those
Speaker:who now live in the
Speaker:first nightingale,
Speaker:like that, that they're
Speaker:very thankful for
Speaker:their opportunity.
Speaker:and for the
Speaker:future generation.
Speaker:So thank you.
Speaker:No, thanks heaps, lads.
Speaker:Take care and, uh,
Speaker:Hamish, I'll see
Speaker:you soon, no doubt.