NZ Everyday Investor

07/08/2024

Technology 'unlocks' value that was previously trapped in established ways.

Check out the full episode here: https://bit.ly/4chKebK

07/08/2024

Can Foreign Buyers Acquire Property in NZ?

Yes, they can.

The 'foreign buyer ban' is not as restrictive as many people think. I learned this firsthand with a 'foreign buyer' acquiring a property that was zoned 'commercial' recently.

Over the next few years, there may be more overseas investors looking for geographic diversification. Why?

Well firstly, there's a lot more money now than there was before, and it's looking for a return without too much volatility/uncertainty. Secondly, there's a growing awareness that geo-politics may change the game in the future.

With a relatively simple set of rules and no capital gains tax, NZ actually looks quite attractive.

Throw in the fact that we're in the middle of nowhere—how uncorrelated to the rest of the world can you get?

Here's a recent podcast where this was discussed: https://bit.ly/3Ah1lgz

06/08/2024

Japanese Yen carry trade explained through recent NZ Property market history...

You borrow money at less than 3% to acquire property that's growing at a rate of 10%, so you can sell the property at inflated future prices to repay the cheap money you borrowed.

As we've seen with property over the past few years, a 'carry trade' works amazingly well, until it doesn't.

Should the yen continue to rise in value, with higher interest rates from the Bank of Japan, combined with falling interest rates in the US (Fed funds rate), what started off as a wee little 'unwind' could, in theory, unravel. Starting with higher risk assets first (tech, crypto, etc.), investors (especially those leveraged) will need to sell at ANY price to repay more expensive debt in an appreciating currency.

Ouch! いたい!

As with property, though, I wouldn't bet on systemic failure (see also: central banking).

The show MUST go on...

https://cnb.cx/3YxGvDJ

06/08/2024

Someone once said, investing in a hot market is like going to a wild party.

You'd hate to miss it, so the best strategy is to have one foot out the fire exit at all times.

Interesting idea, but what happens when they lock the doors?

https://bit.ly/4dtS8jj

05/08/2024

Sycophantic simps suckling on the states teat, are seldom suspicious of the currency programmed to steal from us.

In this latest episode, Louise Macfarlane and I explore another form of money, designed not for theft, but to create abundance, community, and dare I say, freedom!

Sound controversial?

It shouldn't be: https://bit.ly/3yt4BFd

P.S. Welcome to money month!

04/08/2024

Over 560 million users globally of crypto, and that's growing by about 10% a year.

Before the Uber driver, brother in law, and local 'Bitcoin bros' start up, and before you feel the fear and FOMO in anyway... stop.

Get prepared - get confident.

Introducing 'Crypto 101: Crypto With Confidence,' a free, 5-part online course I've partnered on with Easy Crypto. https://bit.ly/3WuqYCg

Myself, and 4 pretty clever experts will guide you through everything from setting up a wallet to making smart decisions.

Don't wait for all-time highs; get some confidence in ya!

Sign up to the course right now: https://bit.ly/4fBRe6u

01/08/2024

Is this the perfect NZ property set up?

30% more property for sale with lettuce-hand holders succumbing to fear, and genuine financial pressures reaching breaking point.

Some areas (Auckland) below the average increase in new listings...

CCCFA and tax 'loopholes' dealt to...

AND the light at the end of the tunnel with interest rates is appearing brighter.

Depending on your definition of true inflation also, there's a LOT of catching up to do in terms of nominal prices.

For vendors: How badly do you need to sell? Try and outlast everyone else.

For buyers: It may get even better over the next 6 months, but don't chase perfection.

Is it the perfect set up? Can't say, but 'good enough' can work too.

credit: Realestate.co.nz

30/07/2024

The adults have entered the room.

"You can now rely on the client's declared expenses, provided you've sense-checked these and believe the information is reasonable based on the client’s situation." This was in my inbox from one of the major banks we deal with. Finally!

Common sense is starting to creep back into the banking sector, following some changes to the overly burdensome CCCFA regulations. As a reminder, this regulation, along with punitive tax measures targeting property investors and higher interest rates, all worked together to stop the 'greedy property investors.'

So now, mortgage advisers are allowed to trust what their clients are telling us, and banks will accept it. This, combined with a more uniform application of tax laws and potentially lower interest rates, will lead to an expansion of credit through housing - it's all very promising indeed!

30/07/2024

Is Trump good for markets?

Perhaps the US market, but for the rest of the world...

30/07/2024

Sick of the tips and tricks from uncles and mums, friends and work colleagues?

Maybe it worked for them, but it feels so generic and not quite right.

Well I don't want to add to that. Instead, I'd like to offer some perspective around investing for new wealth in the new world.

Subscribe to our fortnightly newsletter today and get real, practical advice without the fluff: https://bit.ly/3VbXmJl

29/07/2024

Can politicians influence markets?

If so, which US politician can shift which market?

29/07/2024

Hayden Brown, a human behavioral specialist spoke with me recently on the Everyday Investor Podcast.

I believe that if there’s a renewal of our mind, we can make our own world a little better. So in this one we're covering how everyday people can re-wire their thoughts for a better financial return.

https://bit.ly/3YlMcob

26/07/2024

"If the allegations are true, then ANZ would have engaged in both market manipulation and insider trading. This would be illegal."

"ANZ launched its own internal probe ... and has engaged external legal counsel to assist with its investigations."

Does better legal firepower place big banks beyond the regulators hand of justice? That wouldn't be fair would it? But then again, no one said it had to be, I suppose.

Meanwhile, I'm completing a regulatory return to justify making 11-teen cents from helping a client into a better KiwiSaver scheme...

ANZ is embroiled in allegations it manipulated Australian government bond sales. Mark Humphery-Jenner looks at what this means

22/07/2024

The New Zealand government invests through the NZ Super Fund to help ensure it can maintain Superannuation payments over the long term.

There are some tough questions about the eligibility age of government super, income-testing, and contribution pauses we should debate, but in this chat, I just wanted to know a little more about how it all works.

Special thanks to Rishab Sethi from the NZ Super Fund for having a chat with me.

Check it out here: https://bit.ly/3LzBu6e

21/07/2024

Should property owners be concerned their exit liquidity is heading for the...exit?

Young Kiwis (18-34) are MORE likely to invest in the share market, with 59% seeing it as more accessible than property.

Many residential property investors chase yield, but stay for the capital gains. If there's less people interested/able to buy property in the future, then we're just left with yield, and in residential, adjusted for risk it's not that great.

So should property investors head for the exit before the next generation's checked out? Not so fast.

72% of young Kiwi's say they would STILL purchase an investment property... if they could.

I wouldn't under-estimate the power of technology to solve the divisibility problem of property in the future, thereby making it more accessible.

Good insights here from Stake's 'Ambition Report', which surveys 1,000 non-retired Kiwi's.

https://bit.ly/468mmWC

18/07/2024

"40% of those aged 65 or more have virtually no other income other than superannuation" says the Retirement Commission.

Are you excited about being dependent on the state for YOUR retirement?

I'm confident a new generation of investor will improve this statistic, but for a while, this could get worse.

Being financially secure in a debt-free home is a start, but if you want more, you need to do more. A little effort now is better than a sprint later on.

Make a time to chat with me about how I can help: https://bit.ly/49lc5Yu

17/07/2024

There's been a drop in 'core' inflation, from 4.1% to 3.4%.

(Core inflation excludes food and energy).

Many expect the downtrend to continue.

Kiwibank for example, have confidence 'that the RBNZ's 2% target [inflation rate] will be achieved in 2025.' They are 'sticking with the first [OCR] cut to come in November, for now. But prospects for an even earlier cut are rising.'

Mission accomplished?

16/07/2024

Controversial view: Changing interest rates doesn't effectively control inflation.

So WHY are we so fixated on the OCR?

From the Volcker Shock of the late 1970's to the Voltage Shock of today...

Read more: https://bit.ly/468frN7

15/07/2024

The time's coming where our cash, nice and comfortable earning 'high interest', is coming to an end.

Although it's still very uncertain globally, to get decent return as interest rates fall, investors will have to venture out of safety and into the uncomfortable unknown.

In order to properly beat inflation, it's the most logical strategy.

https://bit.ly/4bO2QQy

14/07/2024

Is commercial property an opportunity for you to own a slice of 'above-average', before the masses wake up?

Scott O'Neill and Dylan Menzies join me on the latest episode of the Everyday Investor Podcast!

https://bit.ly/465I8ud

12/07/2024

The reason why passive investing works...

When we understand the mechanics of money, the strategy becomes clear. Don’t overthink it, just buy things that will rise in value at a pace greater than the pace of monetary inflation.

Check out full article here: https://bit.ly/3RYFVLv

11/07/2024

Did the Bank of Japan spend $60bn just to prove it might do it again?

It likely deterred speculators from continuing to bet against the yen, due to the central bank's Kamikaze moves to strengthen the currency.

Check out full episode: https://bit.ly/3WcSSnd

09/07/2024

Here are 3 things to consider (but don't act on) with your KiwiSaver

1 - Don’t chase past performance.

2 - Consider why the fees are so high.

3 - Ape into growth assets.

Want to learn more?

Click here to arrange a 45-min KiwiSaver review: https://bit.ly/3unamCp

08/07/2024

Investing in the US market from NZ?

It's one thing to understand what you're investing in, but it's another thing entirely to understand the risks you're taking with currency as well.

I had another great chat recently with currency expert Roger Kerr about some of the risks present in 2024.

It's not an essential skill for the everyday investor, but it's another layer to consider. For example, if the US dollar weakens against the Kiwi, even a good investment decision can get 'watered down'. On the other hand, if the US dollar strengthens, even a bad market can be offset.

When investing overseas, it's not just about picking the right stocks (but thankfully, it's still mostly about this!).

Check out the latest episode now: https://bit.ly/3WcSSnd

05/07/2024

Maybe interest rates don't affect house prices and the share market as much as we think.

Perhaps it's more about the SUPPLY of new currency moving around the system, than interest rates. If so, this could explain why higher interest rates for longer, isn't really a big deal.

(unless we have a big mortgage!)

Full episode: https://bit.ly/3W8GOUf

03/07/2024

There’s a growing perspective, that the 'money’s broken'.

It comes from governments and central banks, through complicated shell games most of us don't understand. The dilution and ‘debasement’ of our currency helps achieve their ambitions without having to pass the hat around and deeper than they already do.

With a 2% mandated rate of inflation, we should be doing all we can to protect ourselves from it.

Read more: https://bit.ly/45Hy9ek
Want to get this delivered? Sign up to the newsletter: https://bit.ly/3UT80UR

03/07/2024

"People who do their job should be paid a proper fee.

A fund that's just sitting there passively will never get it right"

Brian Henry on the latest Everyday Investor Podcast: https://bit.ly/3RPEqiG

02/07/2024

I think about this question all the time lately...

Partly, because I'm a massive fan of early 70's music, Buick's, and drive-thrus.

Taking inflation into account, were our parents better off 50 years ago than us today?

Thank you


https://bit.ly/3L6RyvW

02/07/2024

'We just want to know we can life a 'comfortable life' later on'.

A common desire for anyone after they stop working.

Often the outcome, when it becomes too much of a focus, distracts us from doing the things we need to do to achieve it.

Living a 'comfortable life' is the natural byproduct of doing everything else the best you can.

Start with some simple questions that can generate some action:

- How much should I be investing?
- When am I going to stop working?
- How much can I then spend, between retirement and 'the end'?

Keep reading: https://bit.ly/4e6Im7Z

30/06/2024

Most of the people I know, including myself, make financial decisions much like any other decision.

If it seems like a good idea, we just go ahead and do things.

Renovations, the next home, and of course, investments. We do all the right actions, but seldom are we building on purpose, and in a clear direction.

If we have a STRATEGY though, written down and actually followed, we can turn "HOPE we're going to make it" into "WE'RE GOING to make it!"

Invest in no more than 50 listed US companies involved in doing and making things for the betterment of humankind. Avoid investments in banks, insurance companies, gold and bonds. Avoid debt and actively watch the market.

This is part of the strategy employed at 'Always Ethical' KiwiSaver. I discussed this, and other things, with Brian Henry recently.

Check out the latest episode now:https://bit.ly/45M1OTL