The Aucklander
Investment Advice
3 June 2010
By Tanya Kwasza, Property Investment Strategist
It is almost halfway to Christmas already, another year passing by, and another year closer to retiring. Have you ever thought of how many Christmases you have left until retirement? Ninety five percent of us are woefully under prepared financially. We are going to let those remaining precious years of our lives be dominated by financial stress dictating what we can and cannot do! At times it’s easier to do nothing, to go into stall mode, particularly in the wake of the recent economic turbulence we have passed through. Some of us don’t have the energy, time or inclination to start a new business let alone take on the associated risks. Others just don’t have the knowledge, faith and expertise to invest in the share market.
No matter how hard we save most of us won’t be able to achieve a comfortable retirement via banks or Kiwi Saver. Many of us are tired of the get rich quick schemes which advocate property trading, renovating and hunting for cash flow positive properties (which are more than likely to be the kind of properties that people sell out of once they have completed their portfolio). But can you imagine spending the rest of your life living on under $300 per week (average current government pension)?
In order to achieve financial freedom you have to invest. The beauty about investing in property is that you can use the equity in your own home, and you don’t need a cash deposit. There are still tax savings and you can claim back on depreciation on chattels. Capital growth will occur in the future, it is by its very nature cyclical. Investing in property with a long term viewpoint will create you income for your retirement and provide security for your family.
Tony Alexander, BNZ Chief Economist predicts potentially good activity in the housing market from late 2010. This would now make any off the plan purchase a great investment. There is expectation that once the effects of the budget have settled, and when rents start to rise there will be an associated rise in house values. Now is the time to purchase prior to the GST hike.
Contact me at free phone 0508 228 259 for information on an exciting new off the plan development in an area predicted to have excellent future growth. Don’t let another Christmas pass you by and find that you still haven’t invested for your future. The first 50 qualified callers will receive a $60 Lone Star Restaurant voucher for a Mid Winter Christmas Dinner on the completion of a one hour free consultation if qualified.A nudge to get you prepared for all your future Christmases.
