Economic and property outlook for NZ

[Perry]

Right. So the amount (gain) over-and-above the capital that was deposited has gone down by the % figure you mention.

If it went from 14 down to five, isn't that a loss of nine? (Rather than five?)

[PC]

The graph Simplicity gives is fund returns - so what that means??
They don't have a fund value graph.
It's been ~1yr since opened. The numbers from memory:
Initial Investment: $290K
Before the Fiasco: $314K
Dropped to: $275K
Currently: $293K
I wonder if I'll get a tax refund? Ha Ha.

[Nick G]

Most RE Agencies (traditional) at a national level had listing stock down 20% on averages over the last year. Guy I talked to felt we had to get a large volume increase before we get into a real buyers market. Obviously the 10,000 foot view but I hadn't considered that.

[Perry]

It's been ~1yr since opened. The numbers from memory:
Initial Investment: $290K
Before the Fiasco: $314K
Dropped to: $275K
Currently: $293K

I think I'm getting it - albeit slowly.

Over a year, the (aggregate of capital and dividends) 'value' of your initial $290k investment had gone up to $314k; then down to $293k.

So - courtesy of Comrade Cindy's lock-down, etc., you've gone from being theoretically $24k better off, to being theoretically $3k better off, over 12 months.

That would be a guts-kick if you were planning on using the $24k value appreciation for the buy-first-home option, but if you can't get the dosh for years - say - until you retire, it's just a shoulder shrug?

Am I getting close?

[Learning]

So - courtesy of Comrade Cindy's lock-down, etc., you've gone from being theoretically $24k better off, to being theoretically $3k better off, over 12 months.

You give Cindy too much credit. Most Kiwisavers are tied to international markets and they plummeted before any mention of a lockdown.
Feb 17th for Dow Jones for example.

[Perry]

You give Cindy too much credit. Most Kiwisavers are tied to international markets and they plummeted before any mention of a lock down. Feb 17th for Dow Jones for example.

I had noticed that. Hence the "etc." part of . . .

. . . courtesy of Comrade Cindy's lock-down, etc.,

[PC]

I think I'm getting it - albeit slowly.

Over a year, the (aggregate of capital and dividends) 'value' of your initial $290k investment had gone up to $314k; then down to $293k.

So - courtesy of Comrade Cindy's lock-down, etc., you've gone from being theoretically $24k better off, to being theoretically $3k better off, over 12 months.

That would be a guts-kick if you were planning on using the $24k value appreciation for the buy-first-home option, but if you can't get the dosh for years - say - until you retire, it's just a shoulder shrug?

Am I getting close?

Put money into passive investment - it goes up, it goes down. Hopefully more up than down!
Not living off it or spending it for quite a while.
The graph of fund performance from Simplicity looks impressive - but when relating it to actual $ - I'm mystified.
Have queried if they could add a fund value graph as well.
Mostly Vanguard world wide index funds. So can't blame Jacinda for that one.

[Learning]

I had noticed that. Hence the "etc." part of . . .

Markets and hence Kiwisavers actually bounced back roughly half their losses after lockdowns began. So using that argument you could say Cindy's lockdown, etc actually boosted citizens kiwisavers.

[Perry]

Well, after reading Learning & PC's posts, I am so glad I'm not directly involved in such shenanigans.

I'll go with PI - any and every day.

[PC]

Well, after reading Learning & PC's posts, I am so glad I'm not directly involved in such shenanigans.

I'll go with PI - any and every day.

Yes. Direct PI investment is more profitable than paying fund fees and all the taxes.
Requires work and effort though.

[Perry]

Yes. Direct PI investment is more profitable than paying fund fees and all the taxes.
Requires work and effort though.

A matter of ya gets what ya pay for - so to speak.

I've only ever bought one lot of shares - Port of Napier. A degree of keeping-it-locally-owned patriotic parochialism involved, as well as believing it to be as cast iron as it could get.

As for tax, can't see any difference between investment types for that 'cost.'

[crashy]

Stories about people realising that close city living & the cafe culture is not all it's cracked up to be, when compared with a bit of land to grow food and keep hens (for eggs) and be a safer distance from potential pathogen-carriers.

https://www.abc.net.au/news/2020-05-10/post-covid-19-pandemic-simpler-life-migration/12229082

[Perry]

https://www.abc.net.au/news/2020-05-...ation/12229082

Please provide some details - a precis - of such links. That way, PT Forumites can decide whether or not to bother clicking on the link provided.

[donna]

Hello Level 2 - our new normal

We all sigh with relief that business as usual in accordance with level 2 rules will be underway from Thursday.

The run on just about everything may cause its own form of chaos. It will be interesting to see how many people pour into the malls etc and if social distancing will be a consideration.

cheers,

Donna

[Frezzinghot]

We all sigh with relief that business as usual in accordance with level 2 rules will be underway from Thursday.

The run on just about everything may cause its own form of chaos. It will be interesting to see how many people pour into the malls etc and if social distancing will be a consideration.

cheers,

Donna

It will be as per supermarkets and Mcds/KFC,Wendys etc etc. Its human nature that they will flood to the malls! The unknown is how much money will be spent?