I prefer shares for a number of reasons: 1). No high commission "agents" or lawyers involved ... 2). No phone calls at 2am saying xyz is broken ... 3). No tenants to screen/filter/interview ... 4). Simpler at tax time ... 5). Liquid ... 6). Easy to buy or sell ... 7). Almost instant returns straight away (within reason with dividends) ... 8). No property checks ... 9). I'm not in debt currently and don't want to get into debt ever again ... That's about it :)
@@ProjectFrugal I am OK with shares, but if they are overseas shares then you are probably cheating on taxes. Local shares are mostly dull. I have overseas shares but they are in a Retirement asset, so not liable for local taxes.
Great video - I'm an expat from the UK and been here 11 years. It wasn't long before I noticed the predominantly property led chatter in terms of investment. I've been putting money together for a deposit for some years now and watched all my friends get on the ladder in 2021 at the peak of the market. Now that I have the deposit - I almost feel apprehensive / dread of buying a property in the first place. It's the servicing at a high level and the potential of becoming 'house poor' - and the uncertainty of getting enough capital on a tin box apartment for $650k...You're looking at holding for at least 7 years to see any kind of worthwhile return, but hey ho, a house is for living right? I think the general feeling is that most young people (I'm 37, I need to get a move on) could put that deposit money to better use and have a degree of flexibility like you say. I feel that stocks and investing in your own business (I'm a freelance designer) would be not only more beneficial for society as a whole but allow you the freedom to move your money around.
Yeah and in that 7 years, other houses have just increased too. The race is always to avoid paying a higher amount. Gotta live somewhere though. We are slowly learning about other investment types too though but the recency bias of property and the way the money flows through the country via property seems to keep people fixated on it!
@@keepthechangenzI have a retired friend who built and shifted houses and is now very comfortable. I asked the other day what he thought he'd be worth if the central banks hadn't have created so much money in QEs 1-4 trying to replace destroyed money , replace commercial bank reserves in MBS and advoid deflation, to which central banks have no tools for and he replied just right place right time. The central banks took criticism for not injecting liquity after the roaring 20s bubble burst into the great depression. They're now in uncharted territory, question as the boomers retire & the gen z inherit their place in Howe and Strauss's Fourth Turning', who takes over the debt in our debt based currency system to avoid enivitable deflation?
Hey mate I recommend you read the bitcoin standard, and if you are still interested read the sovereign individual, these two books were really helpful to me when I read them in 2019 and still apply now
Amazing video!! Great job on this one man. There are so many people just following their parents financial advice without really understanding today's economy. Things are changing so rapidly and we need to be open at new wealth building tools!! Cheers mate for your helpful contents ✌️
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
Sounds interesting. I was planning to invest some few £ in some coins, stack them up and leave them for a few years, but seeing this changed my mindset. Thank you very much
27 and we have been running our business here in NZ since 18. We’re definitely more interested in holding shares and reinvesting in the business than buying a property. Married now and we feel like it’s possible to get much further ahead in NZ this way - with less time taken away from the business.
Do agree with your points here. Its alot easier to buy existing business if you have an asset like property to leverage to get a loan. A business is a much faster vehicle as there is no ceiling for growth or income other than with how the business is run. I used property to buy businesses and used the equity to get a lower interest rate than I would have otherwise been able to get. I really like how you have covered the expense side of rentals as this is often missed alot from boomers who complain about not being able to afford the investment property due to interest rates going to 7%. Only critism i have is please cover the expenses of a business side in relation to tax like provisional tax how ird works out the tax to pay and if you had a good year one year and a bad the next how IRD works out the tax etc. Seen alot of businesses fail due to the owner did not understand how often the tax man asks for his money.
Yes hard to cover every detail in a 10minute video and it's not specifically saying business is better as business won't be for a lot of people. Will do some business videos in coming months
@@linuxfornerds also yeah good point re equity in properties. I wonder if in a decade if people will leverage back up to buy businesses off the boomers. We have a higher ratio (than Asia Pacific region) of business owners over the age of 50
@@keepthechangenzI think this will be the case. I help alot of business owners that are around our age. I think property is a great tool to leverage to buy and expand businesses due to banks love property as something they can loan against. I was able to get the low interest ratss not business ratss due to property against my business purchases. It would also be difficult for someone to outright purchase a business for 1 million without something to loan against.
There really is two kind of so called property investors one is the person who buys a house rents it out and hopes for capital gain while he/she tops up the mortgage and pays the outgoings. Usually they get lsad into the belief that a two bedroom two storied shit box is going to dble every ten yrs. It aint. Then there is property investors like me. I have over ten houses from Taupo to Waimate and several cities in between. I buy old weatherboard homes on big sections I live in a caravan worth more than most peoples net value. Park the caravan at the back while the old house is rented at the front. Totally self contained. And build a new 4brm ensuite single garage house at the back a basic warm dry modern house takes a yr to do cost about 270 to 290k includes subdivision council contrubutions etc etc. One I am doing at the moment brought 3brm house on quater acre for 330k. To subdivide everything 30k so got a building site for that. The last one I did last year both old house rented for 410 a week and the new build 500 a week. Total to buy existing and build the new 600k. There is so much opportunity her in NZ and more if you get out of Auckland
Well said bro, I've always made my capital gains from property. Its certainly interesting times at the moment. NZ is a great place to live and I still believe property is a great investment on the bigger picture. Might not seem like it at the moment but it will go again like any cycle. Currently invested in a lot of Carbon but who knows how long that will last, going good at the moment. Enjoy your vids bro.
Yes a good job and a rental (if you already have a house) is well worth it. Of course there are other investment options but kiwis are risk adverse and so mainly get into property as well as the tax benefits of course. Sadly no governments have addressed the blatant disparity of property compared to enticing money to businesses which has the added spin off of adding jobs, skills and real value to the NZers and our economy rather than just the 4 Ozzy banks shipping their kiwi profits from mortgages back out of the country and over to Oz. No other modern western economy allows so much money to be taken out and allows so much money to be dictated by another countries banks as NZ does. It’s well past time we ensured the Ozzy banks re-invest in NZ businesses and infrastructure rather than sending all their profits to Australia to benefit from. Has cost NZ years of under investment and ensured higher interest payments in mortgages for kiwis compared to the same Ozzy banks in their own country.
A single payed off rental won't be enough at some point youll have multiple hundreds of thousands if not a million returning 20k , you ethier have to have way more or sell near retirement for a better cash flow return
So what are some small biz areas that can be done by huz/wife that you are seeing doing really well/growing that would still be good to start right now if you could give a few examples of things as specific as you can that would be great ie food-cookie making services-dog walker/pressure washer(home/commercial)
I am not a big fan of doing something just because it makes money. You will get bored of that and won't dig in when it gets hard. It has to be something that interests you. But I have seen lawn maintenance, building, electrical, design, marketing, the list goes on. ANYTHING can be a business if you provide enough value to a market place. You have to understand margins and profitability.
Old experienced propert owner here; owning a rental is not for everyone. But owning a business is for a select few who can afford the risks, and willing to give maximum effort 24/7. Commercial property onwership is sort of inbetween those two. I had a business, not here, and from experience would not try and have one here, too much paperwork and taxes. Also very risky, can take all your hard earned money, house and leave you in debt. Heaps of small businesses are going bust right now.
Business is like anything - you actually have to learn it. You don't just run a successful cafe because you like cafes or food. You have to know what you are doing. Many don't learn the skills. My firm have many SME's doing VERY VERY well and in the top earners in the country because they invest in themselves and understanding how to do it. But yes it is A LOT of work hence why not for everyone. Property is often the easy route making it so popular.
One person business is the fastest way to 150k income vs 10 years trying to achieve that income in the corporate grind where your destiny is only half decided by your work effort and the other half by other people senior to you
@@grimmersnee this is true I have someone in my circle who is in IT who earns around this number after 4 or 5 years experience He hates his job though and has to sell his soul a bit My business on the other hand, I earn around the same as him in less than 1 year experience I work for myself, could work more or less hours if I wanted, don’t require any qualifications, don’t have to attend pointless meetings and participate in workplace politics. Can pick and choose the jobs I take on. One man business, property maintenance in Auckland IT job market also bad right now, hard to switch jobs and has been for a couple years. No freedom in that.
Ever since houses were used as bank reserves in MBS Mortgage backed securities they became collateral for banks along side govt bonds. When you create so much new money in QEs 1-4 post GFC while not realizing the value of VELOCITY in Friedman's inflation equation has changed due to aging populations & globalization money flow's to the FINANCIAL ECONOMY in assets instead of the REAL ECONOMY to give healrhy inflation needed to deflate debt continue this policy for too long & bonds go negative as the coupon price goes up and yields go down. Who'd but a negative rates bond? Only a central bank would obtain a NIRP bond where in the holder pays to hold it ,if you changed bank destination the FED for example wouldn't even have to get congress approval for a bailout and you d escape public attention. You could also achieve inflation targets and even missed inflation targets if supply chain disruption occured that took 30 years to hone and 2 years to disrupt in a Bullwhip effect
Mate love yr videos but stop being to pc with your words and apologising for saying them, words are just words if someone wants to think the wrong meaning of the word then that’s there problem. keep achieving in life👍…. Or as someone keeps saying “stay hard” haha
I prefer shares for a number of reasons:
1). No high commission "agents" or lawyers involved ...
2). No phone calls at 2am saying xyz is broken ...
3). No tenants to screen/filter/interview ...
4). Simpler at tax time ...
5). Liquid ...
6). Easy to buy or sell ...
7). Almost instant returns straight away (within reason with dividends) ...
8). No property checks ...
9). I'm not in debt currently and don't want to get into debt ever again ...
That's about it :)
Nice one. Got to work out what works best for ones self hey!
go0od man but remember with debt based dollar if there is no debt there is no money
Get a propert manager had rentals for 30 plus yrs never had any of your issues
💯
@@ProjectFrugal I am OK with shares, but if they are overseas shares then you are probably cheating on taxes. Local shares are mostly dull. I have overseas shares but they are in a Retirement asset, so not liable for local taxes.
Great video - I'm an expat from the UK and been here 11 years. It wasn't long before I noticed the predominantly property led chatter in terms of investment. I've been putting money together for a deposit for some years now and watched all my friends get on the ladder in 2021 at the peak of the market. Now that I have the deposit - I almost feel apprehensive / dread of buying a property in the first place. It's the servicing at a high level and the potential of becoming 'house poor' - and the uncertainty of getting enough capital on a tin box apartment for $650k...You're looking at holding for at least 7 years to see any kind of worthwhile return, but hey ho, a house is for living right? I think the general feeling is that most young people (I'm 37, I need to get a move on) could put that deposit money to better use and have a degree of flexibility like you say. I feel that stocks and investing in your own business (I'm a freelance designer) would be not only more beneficial for society as a whole but allow you the freedom to move your money around.
Yeah and in that 7 years, other houses have just increased too. The race is always to avoid paying a higher amount. Gotta live somewhere though. We are slowly learning about other investment types too though but the recency bias of property and the way the money flows through the country via property seems to keep people fixated on it!
@@keepthechangenzI have a retired friend who built and shifted houses and is now very comfortable. I asked the other day what he thought he'd be worth if the central banks hadn't have created so much money in QEs 1-4 trying to replace destroyed money , replace commercial bank reserves in MBS and advoid deflation, to which central banks have no tools for and he replied just right place right time. The central banks took criticism for not injecting liquity after the roaring 20s bubble burst into the great depression. They're now in uncharted territory, question as the boomers retire & the gen z inherit their place in Howe and Strauss's Fourth Turning', who takes over the debt in our debt based currency system to avoid enivitable deflation?
Hey mate I recommend you read the bitcoin standard, and if you are still interested read the sovereign individual, these two books were really helpful to me when I read them in 2019 and still apply now
A house is a BIG liability my friend, people usually only look at the capital appreciation and disregard all the ongoing costs to maintain the house.
Amazing video!! Great job on this one man. There are so many people just following their parents financial advice without really understanding today's economy. Things are changing so rapidly and we need to be open at new wealth building tools!! Cheers mate for your helpful contents ✌️
Retire early, invest wisely-Bitcoin is the modern path to financial freedom.......
@WinniAltieriThat's precisely why I trust and value the guidance of Mr. J. Clark in all my endeavors.
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
Celebrating a $30k stock portfolio today from a $6k start. Investing wisely has given me time for family and future plans.
From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
Sounds interesting. I was planning to invest some few £ in some coins, stack them up and leave them for a few years, but seeing this changed my mindset. Thank you very much
27 and we have been running our business here in NZ since 18. We’re definitely more interested in holding shares and reinvesting in the business than buying a property. Married now and we feel like it’s possible to get much further ahead in NZ this way - with less time taken away from the business.
9 years in, well done! What sort of industry? Well done!
@@keepthechangenz Cheers Luke - ecommerce software and advertising. We’re based in taka
Do buyers leverage into property or do banks leverage the buyer? Possibly both.
@@mangoman9290 haha mind twister there!
Do agree with your points here. Its alot easier to buy existing business if you have an asset like property to leverage to get a loan. A business is a much faster vehicle as there is no ceiling for growth or income other than with how the business is run. I used property to buy businesses and used the equity to get a lower interest rate than I would have otherwise been able to get. I really like how you have covered the expense side of rentals as this is often missed alot from boomers who complain about not being able to afford the investment property due to interest rates going to 7%. Only critism i have is please cover the expenses of a business side in relation to tax like provisional tax how ird works out the tax to pay and if you had a good year one year and a bad the next how IRD works out the tax etc. Seen alot of businesses fail due to the owner did not understand how often the tax man asks for his money.
Yes hard to cover every detail in a 10minute video and it's not specifically saying business is better as business won't be for a lot of people. Will do some business videos in coming months
@@keepthechangenztotally agree with you. Keep up the good work look forward to seeing more videos.
@@linuxfornerds also yeah good point re equity in properties. I wonder if in a decade if people will leverage back up to buy businesses off the boomers. We have a higher ratio (than Asia Pacific region) of business owners over the age of 50
@@keepthechangenzI think this will be the case. I help alot of business owners that are around our age. I think property is a great tool to leverage to buy and expand businesses due to banks love property as something they can loan against. I was able to get the low interest ratss not business ratss due to property against my business purchases. It would also be difficult for someone to outright purchase a business for 1 million without something to loan against.
There really is two kind of so called property investors one is the person who buys a house rents it out and hopes for capital gain while he/she tops up the mortgage and pays the outgoings. Usually they get lsad into the belief that a two bedroom two storied shit box is going to dble every ten yrs. It aint. Then there is property investors like me. I have over ten houses from Taupo to Waimate and several cities in between. I buy old weatherboard homes on big sections I live in a caravan worth more than most peoples net value. Park the caravan at the back while the old house is rented at the front. Totally self contained. And build a new 4brm ensuite single garage house at the back a basic warm dry modern house takes a yr to do cost about 270 to 290k includes subdivision council contrubutions etc etc. One I am doing at the moment brought 3brm house on quater acre for 330k. To subdivide everything 30k so got a building site for that. The last one I did last year both old house rented for 410 a week and the new build 500 a week. Total to buy existing and build the new 600k. There is so much opportunity her in NZ and more if you get out of Auckland
Full noise! You obviously still love it?
Great vid man. Got me thinking! Always important to not get tunnel visioned!
Thats the way. Choose your own path but always good to think about it before diving in!
I have no idea what to do 😂. Thanks for the video
Nailed it bro , society is changing and the goal post's keep moving. We've got to look at the big pitcher and question everything all the time now.
It certainly feels like that for sure, but I don't think a lot of people can see it.
Well said bro, I've always made my capital gains from property. Its certainly interesting times at the moment. NZ is a great place to live and I still believe property is a great investment on the bigger picture. Might not seem like it at the moment but it will go again like any cycle. Currently invested in a lot of Carbon but who knows how long that will last, going good at the moment. Enjoy your vids bro.
Yeah good point it may just be where we are in the cycle too. And people will be hissing for those sweet sweet tax free capital gains again soon haha!
Yes a good job and a rental (if you already have a house) is well worth it. Of course there are other investment options but kiwis are risk adverse and so mainly get into property as well as the tax benefits of course. Sadly no governments have addressed the blatant disparity of property compared to enticing money to businesses which has the added spin off of adding jobs, skills and real value to the NZers and our economy rather than just the 4 Ozzy banks shipping their kiwi profits from mortgages back out of the country and over to Oz. No other modern western economy allows so much money to be taken out and allows so much money to be dictated by another countries banks as NZ does. It’s well past time we ensured the Ozzy banks re-invest in NZ businesses and infrastructure rather than sending all their profits to Australia to benefit from. Has cost NZ years of under investment and ensured higher interest payments in mortgages for kiwis compared to the same Ozzy banks in their own country.
A single payed off rental won't be enough at some point youll have multiple hundreds of thousands if not a million returning 20k , you ethier have to have way more or sell near retirement for a better cash flow return
So what are some small biz areas that can be done by huz/wife that you are seeing doing really well/growing that would still be good to start right now if you could give a few examples of things as specific as you can that would be great ie food-cookie making services-dog walker/pressure washer(home/commercial)
I am not a big fan of doing something just because it makes money. You will get bored of that and won't dig in when it gets hard. It has to be something that interests you. But I have seen lawn maintenance, building, electrical, design, marketing, the list goes on. ANYTHING can be a business if you provide enough value to a market place. You have to understand margins and profitability.
@keepthechangenz thanks I was thinking food cause I like making new flavours
@@evanwoodroffe3288 food is very tricky due to wastage etc. Have to think about whether it is healthy stuff too and trends etc!
@@evanwoodroffe3288food is the hardest business to do
Old experienced propert owner here; owning a rental is not for everyone.
But owning a business is for a select few who can afford the risks, and willing to give maximum effort 24/7. Commercial property onwership is sort of inbetween those two.
I had a business, not here, and from experience would not try and have one here, too much paperwork and taxes. Also very risky, can take all your hard earned money, house and leave you in debt. Heaps of small businesses are going bust right now.
Business is like anything - you actually have to learn it. You don't just run a successful cafe because you like cafes or food. You have to know what you are doing. Many don't learn the skills. My firm have many SME's doing VERY VERY well and in the top earners in the country because they invest in themselves and understanding how to do it. But yes it is A LOT of work hence why not for everyone. Property is often the easy route making it so popular.
One person business is the fastest way to 150k income vs 10 years trying to achieve that income in the corporate grind where your destiny is only half decided by your work effort and the other half by other people senior to you
That is an interesting way to look at it! I think a $150k income is about a top 6% income of wage and salary earners.
150k in IT is pretty common and takes about 5 years to reach and u don't hv to be top tier
@@grimmersnee Tidy! Public or private sector?
@@grimmersnee this is true
I have someone in my circle who is in IT who earns around this number after 4 or 5 years experience
He hates his job though and has to sell his soul a bit
My business on the other hand, I earn around the same as him in less than 1 year experience
I work for myself, could work more or less hours if I wanted, don’t require any qualifications, don’t have to attend pointless meetings and participate in workplace politics. Can pick and choose the jobs I take on. One man business, property maintenance in Auckland
IT job market also bad right now, hard to switch jobs and has been for a couple years. No freedom in that.
@@keepthechangenzboth
Great video
Ever since houses were used as bank reserves in MBS Mortgage backed securities they became collateral for banks along side govt bonds. When you create so much new money in QEs 1-4 post GFC while not realizing the value of VELOCITY in Friedman's inflation equation has changed due to aging populations & globalization money flow's to the FINANCIAL ECONOMY in assets instead of the REAL ECONOMY to give healrhy inflation needed to deflate debt continue this policy for too long & bonds go negative as the coupon price goes up and yields go down. Who'd but a negative rates bond? Only a central bank would obtain a NIRP bond where in the holder pays to hold it ,if you changed bank destination the FED for example wouldn't even have to get congress approval for a bailout and you d escape public attention. You could also achieve inflation targets and even missed inflation targets if supply chain disruption occured that took 30 years to hone and 2 years to disrupt in a Bullwhip effect
Try investing in Dubai. 0% Property Tax, 0% Income Tax. Secured investments with Government's direct intervention and paper-less process.
Yeh - Naa - a one person SME business that you mentioned means no other JOB. This topic is not well communicated apart from yes look at all options...
Have you tried it? How did it go?
There are tax advantages, you can control your income and can scale up if you want to also.
@@keepthechangenz again is not about the job but the tax advantage
Mate love yr videos but stop being to pc with your words and apologising for saying them, words are just words if someone wants to think the wrong meaning of the word then that’s there problem. keep achieving in life👍…. Or as someone keeps saying “stay hard” haha
Haha cheers will keep in mind!
@ 👍
The juice is simply not worth the squeeze.
in trumps own words we are doing a health id and you will need it to trade with the usa
Ok mate where did you get your one?
Are you on too tight of a budget to afford a decent mic with a pop filter?
@@Thomas_D_NZ still learning man. What set up do you use for your content?
have you watched any vids on trump trump has shifted sir john keys club house back to the usa
Where was JK's club house?
cave man thinking right here
Paradigm shift, please examine and investigate Caeayaron and Suzanna Maria Emmanuel
@@owenmcintyre9299 is this a bot comment or some real shit?
@@keepthechangenz bot