Financial advice for a fellow ferner



  • So I've recently taken a bit of an unexpected kick to the teeth with Ms Rembrandt deciding to leave me whilst on her overseas holiday...along with our plans for an investment property, travel and settling down life road map which I thought was pretty solid.
     
    I'm giving myself a month to go through the normal grieving process (too much booze, porn and whining to mates about how unfair life is) and then I've really got to pick myself up and make some new plans.
     
    I know I'm not in a position to buy an investment property on my own, I may be able to get some assistance from my father but with the skyrocketing house prices (even here in the naki) I'm no longer so sure this is a great investment idea. At best even with assistance I will probably only be able to pull a little over 20% deposit on a not so great house in a not so great area. I'm even more determined to do some more travel and probably relocate either back to London or to Melbourne, Sydney or even Wellington as a bit of a fresh start but it would be good to have an investment going before I did any relocation. Anyone have some thoughts on what this housing market will do? If it's at a bit of a high at the moment would I be better to hold off until I have a more significant deposit and hope that the market flattens or goes down?
     
    Alternatively I have been thinking maybe I should be looking at getting involved in shares, maybe as a bit of a hobby initially and see how it goes. I don't however know much at all so if anyone knows a good place to start to learn about this or some tips that would be awesome.
     
    Cheers all.



  • Sorry to hear Rembrandt. That sucks.
     
    I'm also quite interested in what fellow ferners think on NZ investemnts, particularly JC.
     
    I can tell you one investment to stay right away from... Horses! Don't get into bloody horses!! 🙂



  • Sorry to hear the mrs has gone , looks like you have the appropriate things in place - alcohol porn etc



  • firstly, that woman sounds like a cunt, and she can fuck off. 
     
    secondly, your grief process sounds solid, but is missing pub skanks in great numbers.
     
     
    My best mate lives in Auckland, but bought a rental in the Naki about a year ago. I'll see how he is going. In my view, housing investments are all well and good until they turn into ice labs. Plus rental properties mean dealing with tenants. urgh.
     
     
    In case it's not clear, I am not the best person to speak to about this. But will help by saying "fuck that bitch" and ordering another round (virtually. in spirit only. you get the idea).



  • Freedom bro, you've just been given the gift of freedom... and the opportunity to find someone else special further down the line. Hope you are holding up ok, as Jegga noted you've got all the critical resources lined up!!
     
    I wouldn't rule out property in the Naki - have a few friends from that neck of the woods who think it's still pretty accessible and that prices will continue to increase, but probably a bit more slowly. Then again they live in Auckland so that may have skewed (screwed!) their thinking!
     
    There are some opportunities in Wellies around Otaki and Levin, and also in Porirua. Come buy in my neighborhood bro, an ex-state house across the road sold for $198k earlier this year!! Didn't need a huge amount of work and nearby developments are going to push up prices in our area.
     
    Getting a property and renting it out could be a way to chip away at an investment and still be free to travel?



  • Fark that's cold, but in time you will most likely be able to see that you missed the signs and you are better off out!
     
    Plenty of areas outside Auckland supposedly booming as a side affect of the Auckland market.
     
    Northland is booming due to its proximity to Auckland, and is getting over-inflated prices. My neighbours house sold recently (in the $550-650k bracket 3/4 acre, new 4 bed house, separate dbl garage with sleepout) in 6 days, houses up here in the $250-350k bracket are going unseen by Auckland investors in days also.
     
    Having had neighbours form hell (who were renters) I would never be a landlord, although if you pay an Agency a fee to do it for you, liability falls to them if something goes tits up, especially with more houses being found to have unacceptable levels of P.



  • Our rental is the neighbour, and we discovered something early on.
     
    There are 2 types of renters in this world
    1/ Those who run a mile when they discover their landlord is their neighbour
    2/ Those that dont.
     
    Number 2 have been outstanding tenants time and time again.Plus it is great knowing that if you get a shit neighbour.. you can move them out. Now we just have to wait for the other neighbour to sell up... they are good sorts, but be nice to control both sides.. 
     
    As for buying an investment property, don't focus on purchase price and future house prices, focus on an ability to repay the mortgage and factor in interest rate rises. I would even go so far as to suggest budgeting for a much higher interest rate, and whilst interest rates are lower than expected... pay off principal. Prices may go up, they may not. Doesnt matter as long as you arent a seller. What matters is an ability to pay your mortgage off as quickly as possible.



  • Invercargill is probably the best rental market as it has the highest yields of the cities, and with a decent deposit, will be cash flow positive.
    If capital gains is your aim, you could do worse than somewhere in the Bay of Plenty or Hamilton - will have to look out to flick it on at a good time though.



  • M4l raises a few good points there firstly she can fark off, the best way to piss her off at this stage is the enjoy things as much as you can and move on . Especially doing the stuff she hated and hanging out with the mates she loathed, word of this will filter back to her . My ex was not pleased to hear people say they'd never seen me happier , this brings me back to m4ls other point - bar skanks. the best way to get over a woman is to get another one under you ...... temporarily . You don't want to rush into another relationship too soon you've got years of porn and drinking to catch up on,



  • Join up with tinder bro, that way you can canvas every bar skank within a 100 mile radius.



  • Depending on your industry, take the london option.  GBP is cheap as chips, house prices have gone up there a lot in the last year, but they should stabilise now, if not fall - a drop of 20-35% isn't completely out of the question.
     
    NZ is now at a point where the average punter can't afford to buy, and the interest rates are some of the highest in the developed world.  This means that unless you can get something with a really high rental yield, you are going to be exposed to a lot of interest rate risk.
     
    I'd leave it if i I were you and bugger off and reset.  but I'm a terrible investor personally, so I wouldn't listen to me!



  • I've got this great house in Cairns you can buy, only went on the market today



  • Join up with tinder bro, that way you can canvas every bar skank within a 100 mile radius.

    Beat me to it, I found some chick I actually like though so we both got rid of Tinder together. There were tears........
     
    Having sold my house I'm also in for a windfall at the end of this month so will eye investment ideas with interest too.



  • Cheers for the feedback guys especially anything about a fluffybunny that can fuck off!..definitely progressing well in to the anger stage! Still a very awful time all round.
    As for Tinder my mate who comes back and forth to the naki got me to sign up recently..problem is the 'pool' of potentials in this area is incredibly small (both quantity and quality) and of those he has been pretty much with all of them...which is a bit off putting. Still a relocation to a bigger city will fix that quick smart
     
    Thanks for the tips too, I've just signed up to an investment property seminar in a couple weeks and will have a serious chat with the old man about how serious he is about helping me out. I think part of the issue is just getting my head around that I'm not after a place to live in, just something where the rent value could possibly exceed the mortgage payments.
     
    Anyone got any tips on getting into the sharemarket? Right now I'm kind of liking the idea of having something constructive to focus on.



  • I've just signed up to an investment property seminar in a couple weeks

    Be bloody careful.  They can be a bit like timeshare sales pitches - at the end of the day, if they have leads, why aren't they doing it themselves.
     
    As always, do your reading.  Martin Hawes had a few good books on investment properties in NZ, which may be slightly out of date.  You also have to understand why you are buying - is it a hedge against NZ property market exploding (realistically not liekly in the Naki), or as a money making exercise.

    Good luck with whatever you do, and very sorry to hear about the relationship packing up.  That shit ain't ever cool.



  • In amongst all the hoo-hah about Akl properties the fact that the NZ Ords is up 25% in the last 12 mths has been largely ignored.
     
    Unfortunately it too is probably due a correction.
     
    Investing in shares - all depends on how much you have to put in as you do need to diversify.
     
    The downside of shares is yr 25% growth is off a much lower base unless you have the balls to borrow to but shares (and can get the loan) whereas you get capital gain on the banks share of yr investment property as well as your own.
     
    Either works as a long term growth strategy. Shares are more liquid if the next Ms Rembrandt turns into more of a keeper than the last bitch.
     
    I'm cautious of property because while shares are also at all time highs there isn't a political party saying we need a policy to devalue the share market by 40%. Mind you I've been cautious for the last two years and hasn't that worked well....
     
    It comes down to personal preference, your appetite for risk and how much you can afford, but whatever you do expect to leave your money in place for a decade



  • If you're looking at share markets, index funds are good option.



  • be some good shares going cheap in Europe now, no?



  • Not sure I'm best qualified to give advice having gone on record in ~2003 that there were too many cafes and opening another was a dumb idea, and the real estate bubble was about to burst...
     
    Thankfully shares do better. I play a simple game of long run averages and trying to catch falling knives. Like Australian bank stocks when everyone else is losing their minds.



  • In amongst all the hoo-hah about Akl properties the fact that the NZ Ords is up 25% in the last 12 mths has been largely ignored.
     
    Unfortunately it too is probably due a correction.
     
    Investing in shares - all depends on how much you have to put in as you do need to diversify.
     
    The downside of shares is yr 25% growth is off a much lower base unless you have the balls to borrow to but shares (and can get the loan) whereas you get capital gain on the banks share of yr investment property as well as your own.
     
    Either works as a long term growth strategy. Shares are more liquid if the next Ms Rembrandt turns into more of a keeper than the last bitch.
     
    I'm cautious of property because while shares are also at all time highs there isn't a political party saying we need a policy to devalue the share market by 40%. Mind you I've been cautious for the last two years and hasn't that worked well....
     
    It comes down to personal preference, your appetite for risk and how much you can afford, but whatever you do expect to leave your money in place for a decade

    To be fair... there isnt a political party saying that either, just 'commentators' ... these commentators like Bernard Hickey generally dont know their ass fro their elbow.
     
    Who said this just a few days ago
     
    Ironically, a 40 per cent drop would make housing more affordable for existing home owners because their mortgages would go down.
     
     
    Really Bernard? Really?
    Even Labour are not stupid enough to want a housing crash.