Being Envious of Other Investors

[Courham]

If you've two of you in kiwisaver and have been for a few years you should have a reasonable little nest egg to add to your other deposits- gov't + employer contributions help and add up. If we needed a deposit for a house now and were starting out my wife's and my contributions would go a long way towards a deposit on a house.

Sold my lifestyle block to a couple from South Africa about 3 years ago. They had to come to NZ with nothing after having walked away from their mortgage free property. Between them in 3 years their kiwi saver made the bulk of their deposit to buy our house (as a private sale and gave them a bit of a deal)- it is a legitimate way to build a nest egg along with other investments. If you've been in it for 5 + years you should have a reasonable amount saved and if you are in your 20s you could easily have been in kiwisaver for 5-7 years and use that money towards your deposit, along with other investments/savings.

As for how I started, went overseas got paid heaps to do bugger all for three years so saved as much as I could and threw it all into property in NZ (I guess I was one of those overseas investors for those three years) and have been cruising ever since. My wife and I had a plan for those three years, while most of the other expats we worked with partied and spent most of their money a few of us cannier ones started getting into property, in the end we had about 4-5 of us doing it. Still travelled and had fun, just didn't take our eyes off the ball. And there was no way we could have done what we did in 3 years had we been living in NZ at the time and starting with $0 savings (as we did).

[Eugene]

If you've two of you in kiwisaver and have been for a few years you should have a reasonable little nest egg to add to your other deposits- gov't + employer contributions help and add up. If we needed a deposit for a house now and were starting out my wife's and my contributions would go a long way towards a deposit on a house.

Sold my lifestyle block to a couple from South Africa about 3 years ago. They had to come to NZ with nothing after having walked away from their mortgage free property. Between them in 3 years their kiwi saver made the bulk of their deposit to buy our house (as a private sale and gave them a bit of a deal)- it is a legitimate way to build a nest egg along with other investments. If you've been in it for 5 + years you should have a reasonable amount saved and if you are in your 20s you could easily have been in kiwisaver for 5-7 years and use that money towards your deposit, along with other investments/savings.

As for how I started, went overseas got paid heaps to do bugger all for three years so saved as much as I could and threw it all into property in NZ (I guess I was one of those overseas investors for those three years) and have been cruising ever since. My wife and I had a plan for those three years, while most of the other expats we worked with partied and spent most of their money a few of us cannier ones started getting into property, in the end we had about 4-5 of us doing it. Still travelled and had fun, just didn't take our eyes off the ball. And there was no way we could have done what we did in 3 years had we been living in NZ at the time and starting with $0 savings (as we did).

Has this changed a little with the NZ dollar being higher?
I take it you had a professional income.
I believe the minimum wage in the US is lower than ours even taking into account the exchange rate.
Oz a different matter, but they seem to have stuffed their economy a bit through profligacy, and I wonder if the high wages there are sustainable.

[GenY]

The biggest thing is not look at what others have, but look at what others have done to earn what they have got, and learn from it.

Think about what you can do, and what you can control for yourself. Don't think about what others have or can do, because that's a waste of time.

Plan ahead, think about what you want to achieve in life (not just investing, but personal development, friendship, marriage/relationship, kids etc), set long term goals, and short term ones to achieve that.

Read books about investment, educate yourself, develop yourself on personal, emotional, investment, and finance levels.

Just because you are stuck in the short term doesn't mean you are stuck forever. Do something meaningful in the mean time.

As long as you set meaningful goals, go achieve them, and you will succeed!

I'm 20 something and living in Auckland.

I see all these other people in their late 20's and early 30's buying a house in Auckland every 6 months. Some of them are mid 30's and own 5-10+ houses.

I'm earning a fairly ordinary wage and can't afford to negative gear any more than one property in Auckland at the moment.

I'm rather envious and getting frustrated with my current position.

How do you stick to a buy/hold strategy and be patient working through a 10-20 year property investment plan whilst everyone else is making a killing?

I was in the same boat as you when I started investing in Auckland in 2008. I was impatient and wanted a full portfolio like 6 months ago! Listen to these wise investors on here- slow and steady wins the race. I didn't find this forum until I had already bought a few rentals. Stay focused on your goals and don't let other people's stories of conquests and bargains phase you. Good luck. You are starting young and have the right attitude to do well

[Courham]

Yes earning good money as an ESOL teacher in Japan.


I think things would have changed a bit in many places due to our higher peso but even in the UK (a pop ex pat destination) it is still 2:1 (vs the more traditional 3:1)- I would never work min wage in US, most of my mates when they went there had skills (trades) and earned good money.
The key is to have some decent skills/quals and avoid in min wage wage bar work.

The guy I bought my current house off (2012) was in his late 20s and working two weeks on in the Aust mines, 2 weeks off here in NZ and doing, very very well for himself and sold he house we had and bought a mortgage free lifestyle block and had other rentals too- the mining downturn may have affected his job but was already well set up in property and no doubt now able to enjoy life (he was already enjoying it then).

Craig

[andyp2010]

Im 25 and i kind of understand you, although for me its less jealousy and more competition.

I compare myself to where the investors youre jealous of were at my age. Im sure in a few years we'll have overtaken these old codgers with our new fangled millenial ideas

[drelly]

There is always going to be someone bigger, richer, faster etc. Comparisons are a pointless exercise because what do you really gain by them either way? Find your own level of happiness. It should not rely on a "favourable" comparison.

[kalovatt]

Far better returns than listening to some spruiker selling property in Fiji.

That made Damap go quiet.................................

I wonder why ???????

[BigDreamer]

I'm sure there are a number of posters on here who are envious to read a 20-something year old already starting to invest in property.

[investernewbie]

I bought my first investment property in Central Auckland when i was about 28 years old. It was a small unit. Nevertheless, after two years of equity increase from the capital gain in my Central Auckland unit and hard saving from one full time job and one part time self employment job. I managed to get my second investment property. It was a bigger house on freehold section and a subdivdable section. Now i am 30 with 2 investment properties. I am planning to buy a few more over the next 5 to 10 years (hopefully the slump is not far away) and sell it off in the next boom to pay off my mortgages. I am planning to have at least 4 to 5 mortgage free properties on my retirement and live off that rather than just on pension.

Just as Gary and other have said- As long you have a realistic goal in mind you will achieve it. I use SMART goal. S- Specific, M- Measurable, A- Achievable, R- Realistic, T- Timely.

[Frezzinghot]

Far better returns than listening to some spruiker selling property in Fiji.

I don't agree, don't waste money on kiwi saver, put any spare cash into paying for or maintaining your property portfolio, one day it will pay itself many times over. Kiwi saver Pfft!

FH

[Frezzinghot]

That made Damap go quiet.................................

I wonder why ???????

Enough of this witch hunt already, have a look at previous posts this guy has posted, take from it what you will but please enough of the slander, it is not becoming of a forum set up to help new investors get ahead.

Lets just get on with getting on.

FH

[Anthonyacat]

I don't agree, don't waste money on kiwi saver, put any spare cash into paying for or maintaining your property portfolio, one day it will pay itself many times over. Kiwi saver Pfft!

I truly don't understand how people can say Kiwisaver isn't an incredible investment vehicle. I completely agree that only the minimum should be given, but the returns on the minimum contribution are massive.

If you earn $100k, a contribution of 3% is $3k in your property portfolio, earning you say 10% per year, which long term is generous. Assuming static income and no tax, after 20 years you've contributed $60k and your investment earnings are $111k for a total of $171,825.

The same $3k per year into Kiwisaver immediately becomes $6,500 with government and employer contributions. After 20 years you've contributed $60k, your employer has contributed $60k, and the government has thrown in $10k. Even if the kiwisaver scheme only gets 3% returns, you get investment earnings of $45k for a total of $175k.

In other words, it takes more than 20 years for a property portfolio earning 10% to beat a Kiwisaver earning 3%. Don't know about you, but my Kiwisaver has averaged 14% or so since inception. I'm expecting a long term average of around 8%, less fees, so call it 7%. At that rate, it takes more than 40 years for a 10% portfolio to beat it.

You can't argue with free money.

[Courham]

Agreed Anthony, and if you get your kids into it early they shoul have some leveraged savings for a deplosit by the time they are in their mid 20s. My daughter has just started her first part time job at 15, in 10 years she should have a nice little nest egg saved.

Frezzinghot, I agree re property investments- but you need the money for a deposit for that first property to get off the mark and if you don't have wealthy parents support you kiwisaver can be a much needed boost to your savings.

When we "officially" retire at 65 our kiwisaver contributions will pay off another property or two.

Craig

Craig

[donna]

Well said Gary Lin.

Mindset - (positive & negative) - the positive is using the success of others to inspire and motivate you to achieve your own goals. The negative is feeling sorry for yourself and jealous of the success of others - and this could reversed when you set goals. Work out what you want and how you can achieve it (you may need help in understanding the 'how' - so get it). Acquire more knowledge and get engage a mentor or two - to keep you on track.

cheers,


donna

[klauster]

You are too young to let envy poising your life.
Having seen the world I purchased my first IP aged over 50 with cash from a pretty good and exciting life. Now I live on investments – that is pretty good, too. Take your time and don’t forget, what you miss in young age you never get it back.