jmh

Well I supose if you have some spare cash and you are worried about putting it in the bank, buying property makes sense. Which is why lots of rich people are snapping up cheap(er) properties in NZ, Australia all over Europe (inc UK). It's not just an Auckland thing. And of course the expenses are tax deductable if it's not your family home.

However you do need ready cash too. My mum has several properties but she keeps enough in a deposit account so that she can jump on a plane if one of her kids/grandkids get sick or is in trouble. She travels business so it's quite a lot.. She's setting up her house to be nearly self sufficient should the social fabric of society breaks down.

But I agree with the above - diversify.

My dad (they are divorced) has rental income (from a granny flat) and dividends from shares to supplement his super. Probably a good spread of risk there.

pippalonghorn

We keep our savings in our international bank account which is based in Jersey. That may be an option for others too. Really easy to set up.

downunderpom

Is it possible that you're thinking in too narrow a band? We have a global economy, and our country's wealth depends on other countries buying our goods and services. If something impacts another country's economy, there is a domino effect, and the impact cascades down.

The purpose of this thread was not to scaremonger, or to frighten, but to get people talking and thinking about what might happen if, for example, the US economy implodes due to them printing 85 billion dollars a month out of thin air. If I am aware of this information, and don't share it, then that wouldn't be very nice - it would be a case of "I'm alright, Jack. I've made my preparations for when that happens." Now that some people who only watched Main Stream Media news (who never mention this sort of thing, as the MSM is owned by the people who - for example - own the Federal reserve, which prints America's money, but is wholly owned by the central banking cartel, and has nothing "Federal" about it apart from the name,) are also aware that they're being kept in the dark, to whatever degree, they can say "Well, hang on a minute...", and as per my disclaimer, do their own research, make up their own minds, and take whatever measures they feel are appropriate..

If you want to deny, deny, deny, then that's up to you. I have insurance "just in case". I have water, candles and the like stored "just in case."

It's up to you what, if anything, you do about it.

TommyLuck

And you're right. Anything is possible.

It wasn't the thread that I was suggesting was scaremongering, but the article that you started the thread with.

It's all worst case scenario, which we should all be aware of, but when does the worst case senario actually happen? Rarely.

Having lived through the recent recession in the UK, I can tell you that what's reported and what theories are put out there about the impending doom is so far off the mark it's irrational.

It's like the (hypothetical) old lady who has several locks and bolts on her doors for fear of being burgled, when in fact she's more likely to die when she has a house fire because she's locked herself in.

Would you rather have the small chance of being burgled, or a small chance of dying or being maimed in a fire?

FWIW - I have insurances, I have a wodge in savings in off shore accounts gaining very little interest, I have my interests as well looked after, within my knowledge.

In fact, after doing some research recently I actually think I'm being to conservative with my wealth and probably should be looking to invest with a bit more rigour.

You posts on this subject leaded me believe (I might be wrong) that you actively research the doom and worst case scenario.

I do detest business speak and the like - but your posts on this subject do sometimes reek of "analysis paralysis".

One things is for certain, if I hadn't taken a few risks in the past, my little nest of wealth wouldn't be as healthy as it is now.

RedDragon2008

The big BMW is on HP
The small golf was paid with cash

The smaller house is cheaper to maintain
Backyard = vegetable patch, penthouse = prison with views

Fancy friends v family comfort

All people are dispensable at work, so it will happen


You can walk away with education and knowledge and start again.

BEVS

If age and health is on your side.

If not, workhouse for you.

Charismatic

Firstly and overwhelmingly I'm very positive about the future of this country and it's ability to make products and services people consume. While keeping some cash on hand is prudent I'm still of the opinion that companies that can continue to make value added products will survive and thrive regardless of the immediate economic conditions.

Housing is a rates play at the moment, if you believe that RBNZ can keep rates low then there's little downside risk to investing. Also aging populations tend to reduce inflation so the long term outlook is great on rates until they all start to shuffle off and you get the Japanese problem. Supply is bound to be late, slow and tied up as long as the RMA isn't changed.

The immigration argument is a red herring, it's tied to jobs. A few years ago we where losing population, now we are gaining. Similarly Ireland's population ended up being both a contributing factor to it's bubble as immigrants flooded in from Eastern Europe for work and later outwards again as the work dried up.

New Zealand isn't like Ireland as our banks are tied to bigger Australian interests, there is no guarantee scheme on accounts and housing supply is very constricted.

It's probably wise to keep an account at a bank with low exposure to Ausraliasian housing markets if you are in cash or similar (and be able to access your accounts online to make inter-bank transfers), you can open a range of accounts with foreign banks online. You may never need it but if you do by the time you submit the paperwork it'll be too late.

downunderpom

You know, you're right. Sometimes you can't see the wood for the trees. At one stage I didn't listen to the news or read a newspaper, to avoid the negativity. I figured that if it got bad enough someone would tell me! Now I've swung the opposite way, and as you say, I've been "actively researching", looking for worst case scenarios.

The only problem is that a lot of what I've been reading appears to be written by people who are revelling in the fact that the sky is falling! There is quite a lot of gung-ho "bring it on" comments added on to these posts, which don't help at all.

This is why discussion is good. It gives you another perspective, and lets you realise that you've been soaking up other people's negativity, rather than getting a balanced input. Right, time to get some balance back.

Thanks, Tommy!

TommyLuck

Hmmm, sarcasm or genuine response?

If the latter - I'm glad you've had your perception changed.

If the former - Firstly, is sarcasm really a good conduit to contune this, as you put it 'good discussion'?

In summary, control what you can control. Historically, and I'm talking since humans started trading, those who took measured risks increased their wealth, with the exception of a few.

But with good knowledge and advice, if you have interests to protect it's pretty easy to protected them and the can prosper. The vast majority of people who bottom out and lose most or everything is as a result of a series of bad decisions and taking poor advice - and perhaps a little bit of going with the heart instead of their head.

My folks did it and my Unlce (Mums brother) and Aunt did it.

Both carried on with businesses they should've pulled out of years before they finally screwed themsleves over by trying to make it work, rather than see the glaring opportunities to conserve what they had at the time and rebuild.

As it is both couples, both in their 50's are in a position whereby none of the them will be able to retire until well in to their 70's.

My folks even lost a house that they rented out due to a series of poor decisions, so not only lost a property, but a source of incomce too.

It shouldn't have happened, they listened to the wrong people, failed to see and act on the warning signs and soldiered on rather than taking a step back to re-evalute and making a plan. They didn't and stuck to the same plans.

There are many stories of personal financial ruin in the world and nearly all of them contain the same elements of so called 'bad luck'. Luck doesn't come in to it - poor decisions lead to 'bad luck'.

Luckily (and rather selfishly) for me I've learned from my folk mistakes and have my interest protected, or at least I think I do, perhaps have I have actually made the same or different mistakes. Time will tell.

But you know what?

Despite my folks being at the peak of their wealth in their early 30's (now late 50's), all whilst costs have been rising - they survived these failures and life goes on.

They both have jobs and whilst it's tough for them they don't live on the poverty line - life could have been very different for them now, but they get on with what they have.

They now own their own home again so that is something. My uncle and aunt however, have effectly been told that it's very likely they'll never own their own home ever again ...

I admire that none of these four family members dwell on what might have been and try to make the best of now.

ExKiwilass

Be very wary of anything touted by Demographia. the guy who runs it is a conservative from the US and he has an axe to grind against density and public transport and for highways and urban sprawl.

downunderpom

Genuine. If I was being sarky I'd use the <sarc> ... </sarc> tags.

downunderpom

Good to know. Mind you, I think MOST of the posters and bloggers have an axe to grind - otherwise why would they go to the time, trouble and expense of setting up a website...?

garethwm

I think the housing market will crash eventually. It cant keep rising at about twice the rate of inflation. There will be a correction at some point. I dont how far in the future that will be though.

Bellasmum

That wont happen in Auckland if at all until there is a glut of houses on the market.

Charismatic

Or interest rates return to normality. Supporting all of this is a flood of cheap money. We are running crisis rates in a post-crisis environment.

That said outright affordability is mostly down to supply and demand of course.