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  • Real Property Investors & Strategy

    Having been an investor for over 22 years, the headlines in the tabloids dont change the fact that I continue to invest. The real debate is on what strategies work best in the current market. Ive been mainly a large city investor and think I will probably remain that way. The benefits of the large cities is of course population/demand but the downside is yields (even created yields) are quite low. What are your thoughts as a serious investor on the best strategies for cashflow at the moment?
    Living a more meaningful & enhanced life with investments, business and blogging. www.theFIminator.com

  • #2
    Moving forward, I believe its going to be harder and harder to either start out as an investor or grow your portfolio.

    There may be small windows, similar to 2020, but I would say by the next property boom, let's say 2030, more and more tax advantages will be removed until there is nothing left to claim on

    The bigger corporations will likely control the market, the sole trader will likely live off what's left, if they can afford to.

    Although I'm holding onto my portfolio, I have moved on to other forms of investment just to protect myself against these "possible scenarios"and hedge my wealth.

    ​​​​​​

    Disclaimer: This is not investment advice, just one property investors own thoughts.
    Last edited by Jeffa; 07-08-2022, 03:53 PM.

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    • #3
      Definitely gets harder as prices go up disproportionately to wages/income. But who knows, that might change, Governments will change, we will become a larger country and smaller cities will get larger. So I think there will be opportunity just not in the way we know it. What other investment vehicles are you using? Shares have become a lot more popular now than a few years ago and there are lots of different managed fund / ETF options these days


      Living a more meaningful & enhanced life with investments, business and blogging. www.theFIminator.com

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      • #4
        Originally posted by Zorwarrior View Post
        , Governments will change,

        I forgot to mention, don't forget it was the Key government who started with ending claiming tax on building depreciation, remembering he was an investment banker, and it's only moved on from there, so this is why come the next boom I'm expecting more if not the remaining property investor tax advantages removed
        I invest much of my capital in the US companies, some commodities in OZ and Asia, my theory is to be as diversified as possible,I learned that from investing in property all over New Zealand.

        I prefer the US , basically because they have the reserve currency of the world, and there whole country, economy, history and the most advanced war machine is built on capitalism, there is no lack of investors or access to capital /debt than any country in the world than the U.S A

        The likes of me and Mike Hosking hoping New Zealand will turn into a country that celebrates wealth other than frowns upon it is very unlikely.

        I can't change the New Zealand mentality, but I can improve my own position, out side of NZ .

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        • #5
          Yes the NZ psych is still very small town but it is changing. We are also very socialist and thats because of our history (although we cant afford it). I still hope that we will change and evolve. And instead of the mindset of the Government solving our issues, we focus on striving to achieve. Diversifying into the US, OZ and Asia is a great strategy.

          I still like property because I can be more hands on but I am diversified too
          Living a more meaningful & enhanced life with investments, business and blogging. www.theFIminator.com

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          • #6
            Originally posted by Zorwarrior View Post
            Having been an investor for over 22 years, the headlines in the tabloids dont change the fact that I continue to invest. The real debate is on what strategies work best in the current market. Ive been mainly a large city investor and think I will probably remain that way. The benefits of the large cities is of course population/demand but the downside is yields (even created yields) are quite low. What are your thoughts as a serious investor on the best strategies for cashflow at the moment?
            You may not find much consensus on best strategies in part because investors have different mentalities, risk tolerance and opinions on future outlooks.
            My thoughts are:

            1. Focus on yield. What activities can you do to improve yields on existing properties? Does the floorplan permit adding a 4th bedroom or study for example?

            2. Common wisdom has it that it’s best to invest in large cities because of demand. Recent events however have proven otherwise. Big cities are also targets for new builds and many of them will end up in the rental market increasing supply and putting pressure on rents. No surprise Auckland has experienced the lowest increase in rents nationally in the past 12 months and Wellington currently has twice the number of rental properties advertised versus same time last year.

            3. Yields in regional centres and satellite easily beat yields in cities and will continue to for lots of reasons including affordability, greater acceptance of remote working and general migration of specific demographics from cities. For example rents in Levin are up about 20% YoY, Rents in Auckland about 3% YoY.

            4. Diversify, ideally off-shore. Personally I’m seeing amazing dividends and distributions from offshore REITS in the logistics, warehousing and data centre space. It’s indescribably wonderful having dividends paid quarterly to your bank account without you having to lift a finger. Set up offshore banking to hold this income. Hold USD or currencies largely pegged to it (I like the SGD for example). USD is a safe haven currency and now almost at parity with the Euro. Chinese money is pouring into the USA like there’s no tomorrow and passive income, especially inflation hedged passive income, is the holy grail IMHO.

            5. Reduce debt. Depending on your circumstances, with interest rates heading upward and interest deductions being progressively removed it may make sense to reduce debt.



            Disclaimer: This is not investment advice, just one property investors own thoughts.

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            • #7
              Originally posted by Sanya View Post


              4. Diversify, ideally off-shore. Personally I’m seeing amazing dividends and distributions from offshore REITS in the logistics, warehousing and data centre space. It’s indescribably wonderful having dividends paid quarterly to your bank account without you having to lift a finger. Set up offshore banking to hold this income. Hold USD or currencies largely pegged to it (I like the SGD for example). USD is a safe haven currency and now almost at parity with the Euro. Chinese money is pouring into the USA like there’s no tomorrow and passive income, especially inflation hedged passive income, is the holy grail IMHO.
              You using Hatch or Smartshares or similar to get into REITS? Its an area i want to investigate further
              Living a more meaningful & enhanced life with investments, business and blogging. www.theFIminator.com

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              • #8
                Originally posted by Zorwarrior View Post

                You using Hatch or Smartshares or similar to get into REITS? Its an area i want to investigate further

                There are lots of ways to do it but I personally prefer to set up offshore (in target country) brokerage accounts linking them to bank accounts in the same country.

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