Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

young people entering the property market for investment

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • young people entering the property market for investment

    Hi. I have a couple of properties which is enough for me as getting older. I tell my kids they must get into property, not just for a home but as an investment. But with the tax deduction rules changing, it really turns a place quickly into negative gearing. What would you be suggesting to your 20 year old kids in the way of type of investment property. To buy a reasonably new place to enable them to claim on interest once they rent it out means the property probably is limited in the way they can add value. both my kids are looking at going shares in their first place and i will probably help with the deposit (a secured deposit i think it's called). We are in CHCH and would like to buy locally. Who do you suggest we go to for advice? Thanks

  • #2
    No one has any thoughts on property investment strategy for young people starting out?

    Comment


    • #3
      My 2 bobs worth, is just wait and see for now things are changing quickly, see what 2022 brings from Feb, March onwards I think there could be some turbulence in ALL markets which will affect the property game as well. These brand new town houses (interest deductible) which are being built on every street corner could become a lot cheaper especially if we see a brain drain out of NZ overseas again.

      Comment


      • #4
        I would not be looking at new townhouses. Way overpriced at the moment. I think the interest deductibility is a bit of a smoke screen. Buy something that has a bit of a twist. ie You can either add extra rooms or open up the layout. A bonus could be a big backyard that you can build on. Land value goes up and house value go down. This can accelerate capital growth, There is also a very useful property group on Facebook that is Christchurch based, You will find some very experienced investors who are willing to share their stories at meetups.

        Comment


        • #5
          Moving Houses TV series is a good watch. Why not move an old home onto land, do the Healthy Homes tasks and if the land is a reasonable size put two homes on it (eventually) for the 2 incomes.

          cheers

          Donna
          SEARCH PropertyTalk, About PropertyTalk

          BusinessBlogs - the best business articles are found here

          Comment


          • #6
            Hard question to answer that.
            Can you sub divide any of the land that you all ready have, you keep the old rental and the kids can build on the back ?
            That way, you keep your income, they get the land cheap and can deduct the investment interest, they learn the development process and everyone's a winner.
            Deducting interest might be a mute point in a few years time anyway if the stupid rules get reversed.
            If this idea works on paper, you don't need to rush, rather slowly work on it and see what opportunities come up in the mean time with a possible change in government or rising interest rates forcing sales.
            Who knows?

            Comment


            • #7
              Originally posted by chook View Post
              My 2 bobs worth, is just wait and see for now things are changing quickly, see what 2022 brings from Feb, March onwards I think there could be some turbulence in ALL markets which will affect the property game as well. These brand new town houses (interest deductible) which are being built on every street corner could become a lot cheaper especially if we see a brain drain out of NZ overseas again.
              +1. The property market is encountering serious headwinds.

              Comment


              • #8
                Thanks folks. We think we'll wait for things to settle a bit. Not sure new places are the way to go. Far too expensive for a first home buyer, And build prices can't be locked in. I think an older place to add a bedroom might be a starting point.

                Comment


                • #9
                  Originally posted by frances56 View Post
                  No one has any thoughts on property investment strategy for young people starting out?
                  I think it will be hard to enter in the property as an investment these days. Everything seem against the property investors thanks to our socialist government.

                  IF I am 20 years olds now and earning I would be educating myself in the power of compounding interest (I wish I known this when i was younger ) I just recently took the plunge and done this and so far its good..
                  Take it easy!

                  Comment


                  • #10
                    Originally posted by Rohb View Post

                    I think it will be hard to enter in the property as an investment these days. Everything seem against the property investors thanks to our socialist government.

                    IF I am 20 years olds now and earning I would be educating myself in the power of compounding interest (I wish I known this when i was younger ) I just recently took the plunge and done this and so far its good..
                    Compounding interest is a big lie.
                    Bankers have rigged the system.
                    Do some calculations.
                    Put a compounding interstate of 10 %.
                    Then try one of 1%.
                    then try one of 0.1%.
                    then adjust for inflation.
                    See how much they have all conspired to rob you.

                    Comment


                    • #11
                      Originally posted by McDuck View Post

                      Compounding interest is a big lie.
                      Bankers have rigged the system.
                      Do some calculations.
                      Put a compounding interstate of 10 %.
                      Then try one of 1%.
                      then try one of 0.1%.
                      then adjust for inflation.
                      See how much they have all conspired to rob you.
                      I encourage young people to save and invest as they can and this is one way to create their wealth. Money in the bank gives you virtually nothing.If you looking at S&P 500 that proven to have a average returns 11% or similar funds (ETF) young people can get into to help themselves save and build up a portfolio,who knows in 40 years of saving they could become a millionaire.Investing in property these days I think is alot harder for younger people compared to a few decades ago when I started.
                      Take it easy!

                      Comment


                      • #12
                        Originally posted by Rohb View Post

                        I..who knows in 40 years of saving they could become a millionaire...
                        You're thinking in 2022 values.
                        You need to think in 2062 values.
                        When your million will be worth about one years wages.
                        The system is rigged on both sides (by the Banks) I tell ya.

                        Comment


                        • #13
                          Originally posted by Rohb View Post

                          I think it will be hard to enter in the property as an investment these days. Everything seem against the property investors thanks to our socialist government.

                          .
                          IMHO, it's not the political leaning of any government that is causing the headwinds for young home buyers.
                          I don't know why, but it bothers me to see people suffering under that particular lie.

                          Think about it.

                          You get two different home buyers, offer to lend both as much money as they are stupid enough to take.
                          Then pit them against each other at a heated auction.

                          Like some medieval demon goading two peasants into a brawl.
                          Now do that for twenty auctions.
                          Eventually the bidders will hit a huge price wall, constrained by their income, no matter how reckless they wish to be.

                          Now imagine said demon has been playing a trick, he has no gold in his vault, just one gold coin per every 10 coins he has lent out.
                          But most of the peasants don't know this.. and are foolishly happy to take these worthless gold receipts as payment.

                          And the king allows this lie, why?
                          Because with every worthless gold receipt the demon gives out, his past kingly debt shrinks in comparison.

                          And the only ones on the pigs back are all the little sub demons, clicking the ticket on every step of the fake gold receipt issuing process.

                          Comment

                          Working...
                          X