Angeshirl

Hi Guys,

I haven't been on here for a while, been busy with new jobs and getting fit (for the first time in my life). I think all the running and bootcamp has cleared my head and made me think long and hard about stuff and now I'm stuck! I have a pretty decent amount of money sitting in my savings account and a decent amount in my Kiwi Saver. While I'm reluctant to go shouting the amount from the rooftops, let's just say it's a healthy amount but NOT for Auckland. I've been laughed out of banks and left picking my jaw up from the floor when standing in a tiny 1 bedroom house in Avondale going for $600K I mean it literally knocked the wind from me and I had to go home for a stiff drink. I rent out West, have a partner (who can't help me with any more money towards a deposit for a house) I'm not planning on having kids anytime soon but I need to do something with my savings. I just can't justify buying in Auckland but I need to stay here for my job. I was thinking of buying something somewhere else as a rental (obv without the help of kiwisaver) but are there any other options rather than property? I'm almost at the stage of sending the money to my sister in Scotland and telling her to invest it in a property there with her and her partner. I just don't know what to do. I feel like I'm the only one that is shocked though, my friends are out there taking on mental mortgages and I wonder what is wrong with me?
Sorry this is a rant that might open up a horrid discussion about house prices in Auckland but alternative investment suggests would be welcome!

MrsFychan

why do you need to spend it? why not let it just sit there gaining interest? you maybe glad of it later on

BEVS

I think those that wish to talk about Auckland property prices have had their say on more than enough occasions. If they want to do that again , they can open their own thread for it.

Folk. Let's leave this one clear for suggestions please.

If you can afford a rental without the Kiwi saver thing , then that might be the way to go.

Snap Shot

How about a Term Deposit ? There's some good interest rates if you look at what each provider is offering. Anything from 3 months term to five years, dependant on your preference.

The interest rates are much more healthy here than in Britain for savers. Don't rob your Kiwi Saver, I think that's storing up trouble for the future, IMO. By then PM John Key will be long gone and living the life of a millionaire in America.

You are being very prudent. Some might say it's madness not to get onto the Auckland property ladder. Reminds me of the story of the emperor's new clothes.

All I'll say is, it is my understanding, of the nature of bubbles, is that they burst. I'm old enough to remember the property crash in Britain in the late 1980's. Negative equity anyone ? Can't afford to switch the lights on ? Houses being repossessed by the bank ? That won't happen here of course......I mean that's not what people migrate to NZ for is it ? That's the sort of crap that only goes on in Broken Britain.

Angeshirl

Yes, much more interested in what other people would suggest I do, rather than discuss the insanity out there.

MrsFychan, I have asked myself the same question and I can answer that, I got caught up in the fear. Get on the property market, get on the property market, get on the property market from EVERYONE around me. Then I started looking into it and got breathless. I'm glad you said what you did because I am starting to think the same, I probably don't need to spend it yet and could keep adding to it in the hopes of getting a wee rental somewhere in NZ I could happily retire to maybe?

Tom H

No brainer

Keep investing into your kiwi saver..

Another thing you could look into if you want is investing in shares. Of course, this comes with risk but why not have a look at investing in Mighty River Power or Air New Zealand etc? Or, look overseas to invest money in shares.

I'd let your money grow before thinking about investing in property. I mean you could talk to Nikki Connors at Propella Property Investments if you want but keep growing your income before purchasing a place in Auckland.

Justcol

I don't think they'll let you withdraw your kiwisaver to buy a house in scotland

Angeshirl

Hi Just Col,

They won't, I have enough without it though

Charismatic

The crunch is either you get paid more or leave Auckland if you want to buy. The same money goes a lot further in other places so even if you take a slight pay cut you may get a better quality of life (In terms of being able to afford a house and get to work in less than 10 mins).

If those aren't options and you want to make little moolah to big moolah over the long term there are a number of low cost tracker funds you could invest your moneys in.

It's a good idea to have a diversified investment portfolio anyway.

MrsFychan

If you leave NZ for more than 12 months you are entitled to remove all of the kiwi saver to do as you wish, as far as I have been told

Bo-Jangles

I would also advise caution with regards having all your money with one bank - spread your money around a number of institutions as there is no Government backed protection or bank deposit guarantee scheme here in NZ.

Perhaps you could get some professional independent financial advice as you have to be wary of tax also - you'll pay tax on almost every cent earned here with no ISAs to stash away money from the tax man, which is why property is such a popular choice.

Justcol

Now then, now then, we'll have none of that sensible nonsense on here.

Mention that again and you'll be accused of being a broken record

Apparently this is what happens when you cross you Bombays

Moses2013

We all like investments but that isn't everything in life and you don't have to stay for a job. You also never know if a good investment today will be a good investment in a few months time. If you want a nice home and can't afford it in Auckland, I don't see the point of staying there for a job. At the moment it looks like you're living to work, rather than working to live. The property market in Auckland will crash at some point too, so buying a property you don't really like and being stuck with a huge mortgage won't make sense. Why not move somewhere where you can buy cheap now, are happy and know you will still be able to afford it with a lower paid job.

Charismatic

Rubbish. You get issued with a banjo, straw hat and a pair of dungarees then get buddied up with a pet pig until you learn our yokel country ways .

Angeshirl

Totally appreciate what you have said but I guess there are other factors at play here. Yip totally on board with the huge mortgage, skanky house issue... Not into that hence asking about alternatives. I guess the alternatives are to prevent me from moving away from auckland. Believe it or not I really like it here because I've worked hard to have an awesome groups of friends, I have my adopted brothers I always wanted because I sing in a band here AND from being in some really bad jobs I've found one I actually love and it would break my heart to leave just because I wanted some property. I guess this shows a clearer picture of my dilemma? If I hated auckland and had a bad job I guess it would be a no brainer...I can understand why it seems like I'm living for work but I'm not really because I love what I do and I think I'm maybe trying to think, should I just treat myself because I'm actually really happy or jump on the property ladder cause everyone tells me to? I guess in just truly stuck between a rock and a hard place.