August 11, 2024 • 39 mins
At what age is it a bad idea to become a first home buyer? Is it ever too late?
Financial adviser Lisa Dudson joins Tim Beveridge on The Weekend Collective to discuss this and more.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talk SEDB.
Speaker 2 (00:10):
And welcome back to the Weekend Collective. This is smart Money.
By the way, I'm Tim Beverage. And if you've missed
any of the previous hours, you can go to look
where our podcasts come from. Go to iHeartRadio and look
for the Weekend Collective and you can catch up with
anything you've missed, or even on demand if you want
to go into the News Talk SIBI website. From three
to four we had Politics Central, a couple of interesting interviews,
(00:30):
one with Shane Jones about the way the gent tailors
are treating pricing and whether they are adding as a
cartel and gouging everyone when they can get away with it.
And we followed that up with an interview with Tama Portucker,
who's the Associate Minister for Housing about the number of
people relying on emergency housing has dropped by thirty two
(00:51):
percent in the last and six months, so and where
we're going with that as well. So and also of
course fascinating discussion with Greg McPherson just around you know,
the science around getting older and avoiding it can and
my guest, I don't know if she's interested in those
sorts of things. But for smart money is Lisa Dudson.
Are you do try and fight the signs of aging
(01:12):
at all? They see just a spring chicken yourself.
Speaker 3 (01:14):
Yeah, I don't know. I'm not much of a spring chicken,
you know. I think you certainly make an effort, right
because otherwise you see friends around you and they're all
falling apart, and you think, well, you've worked really hard
all your life to kind of have a bit more
freedom of choice when you get a little bit older,
and it's kind of I don't think going to be
ideal if your body's falling falling apart around you.
Speaker 2 (01:33):
Does do rich people live longer? I don't know if
we know much about that, because if you're wealthy, you
might tend to just indulge in too many glasses of
red fine French red wine.
Speaker 3 (01:42):
Yeah, And most people to get wealthy have to work
pretty hard, right, So that comes with some long oils
and some stress and often connecting your health. So I
mean that's probably a bit of a mixed bag, I think.
Speaker 2 (01:51):
Yeah, I'm a bit disappointed that I wasn't the Yukland
who won the forty four million, even though the odds
are so ridiculous. I'm lutto, but there's a part of
me that goes, why not me, damn it with someone else.
Speaker 3 (02:02):
I'm sure there's lots of people have been saying that
same thing.
Speaker 2 (02:04):
Yeah, anyway, Look, the first topic we're going to have
a chat about is I'm trying to find a way
of phrasing it so it doesn't sound so desperate, because
it does. It's quite common overseas for people to rent
for their whole lives. But somebody raised it the other
day about is there a time when you are better
to I don't want to. Let's maybe not the word
(02:26):
give up, when you are better to choose to rent
for your whole life rather than to aim to have
your own home. And there are people who actually do
that as a financial strategy anyway, because they put all
their all their attention into investing and making money elsewhere.
But it is something that we're going to see more
of that people are going to be renting for, you know,
(02:48):
just resigning themselves that I've left it too late. I'm
going to have to you know' that's my lot? Or
do you think there's always hope?
Speaker 3 (02:55):
I personally think there's always hope. And that's partly because
you know, I've been in financial services over twenty five
years now and I've seen some extraordinary things happen when
people get focused. So and so I just kind of
feel that you should never give up. And I think
it's tough that when you get to sort of sixty
five seventi ish you don't have your own home. Like,
(03:15):
it's okay if you if you have invested really well
and you can afford to pay rent for the rest
of your life, but often with a lot of people,
they haven't and you've got you know, two things that happens.
One is that you don't you haven't actually invested all
your life, so you don't have those funds. And the
second thing is is you have a bit of lack
of security around where you live. And you know that's okay,
(03:39):
and you're you know when you're younger, but I think
when you're in you're sort of collecting the New Zealand
super Do you want to be in a situation where
you don't know whether the land was going to sell
the house.
Speaker 2 (03:48):
Also incredibly disciplined too, if you are going to rely
on simply investing your money anywhere, but in your own
property because for many New Zealanders that's the one sort
of bit of enforced sort of capital gain that you
ever see as your own house or getting into it.
Speaker 3 (04:07):
And even yeah, and I think lock capital will gain
through you know, keeping pace with inflation and more than that.
But the key thing I like about getting into your
own home is the compulsory savings of it. Yeah, I
think it's quite different saying oh, I'm just going to
rent for life and put a save a bit of
money versus actually maybe buying a rental property and then.
Speaker 2 (04:24):
Well there's a halfway house on it, isn't there Because
there are people who decide that going to rent where
they want to live and then they still invest in property,
and that would if you can, I mean, it feels
it would feel like the wrong approach to take that
you're never going to have a stake in property in
some way. But I don't know if I'm just being
(04:46):
a bit sort of singular vision on that.
Speaker 3 (04:48):
No, I don't think so, because again, you know, you
see too many people, I think, when they get to
that age of sixty five plus who don't have the
security of knowing they have a home for the rest
of their life and being able to afford to comfortably
live even if they decided to rent, to be able
to comfortby rent for the rest of your life. So
I you know, I think it's always really important to
(05:09):
keep focused on buying a home in some shape or
form and never give up hope on it.
Speaker 2 (05:14):
What are some of the sort of turn around stories
you've witnessed.
Speaker 3 (05:18):
Or things like, you know, I had this lady come
to see me years ago, for instance, and she'd come
from a tough background, like we're talking, you know, gangs,
you know, all sorts of things. She had two kids
to two different fathers. She was living with her grandmother
because you know, just the tragedy of the situation. She
wasn't anyway, to cut a long story short, she came
to see me, and this is probably going back a
(05:38):
dozen years or so ago now, and she had just
got really focused, had a couple of jobs. Grandmother helped
out looking after the kids. She put herself for a university,
and she came to see me and she had seventy
thousand dollars and she'd saved enough to get into her home.
This is in road rual, like you know, to say,
twelve fifteen years ago. You know. Now she was from
you know, everything that could have been tough in someone's background.
(05:58):
You know, she tacked all the boxes and so, you
know that was super impressive.
Speaker 2 (06:02):
And so does she see you part way through the process.
Speaker 3 (06:05):
Well, funnily enough, she got one of my books and
she bought it in to see me, and it was
all kind of dog egged and you know, and she'd
kind of you she'd got someone given that to her
and she just picked it up on it. You know,
sometimes it's just the right time, and she just read
it and she read it and she read it, and
it just got her focused on she just kept saving
towards that house deposit. So it was a you know
what book that was. Yeah, it's called Get your Head
(06:26):
out of the Sand, which is one of my first
one actual books, I right, which I really liked the
title of it.
Speaker 2 (06:34):
It's quite a good title actually, and sounds like it
might have been the perfect title for her.
Speaker 4 (06:38):
Yeah.
Speaker 3 (06:38):
Sometimes it just, you know, when you want to know something,
sometimes it's just the right moment the right information appears right,
you know, And so I've got you know, there's lots
of different stories like that I've come across over the years,
and it's just deciding that you're going to do things
differently because something's super important to you.
Speaker 2 (06:54):
How many books have you written about?
Speaker 5 (06:56):
Eight?
Speaker 3 (06:56):
Is eight?
Speaker 5 (06:57):
Yeah?
Speaker 3 (06:57):
Well it's good memory.
Speaker 2 (06:58):
Yeah, I just remember when you said you sort of
said it with a sense of pride that embedded itself
in my brain. I thought, it's not that's one or
two books. It's on Martin Horse because he's written how many.
Speaker 6 (07:09):
I don't know.
Speaker 3 (07:09):
He's probably written more than me. I love Martin. I
think he's great.
Speaker 2 (07:12):
Yeah, but no, it's I can't remember how many he has,
but he's he's got quite a bit. Nice. But the
thing when you're writing a book on being smart about money,
how do you I mean, when you get to book
number four or five, are you just what do you do?
You just re repackaging ideas for the for the environment
or do you come up with the new ideas? And
I haven't thought about that. Actually, I'm just going to
(07:32):
stick that in your book.
Speaker 3 (07:34):
Probably a bit of both, you know. And I've written
half on property and half on sort of personal finance.
So you know, some have got case studies, some haven't
got case studies. The case stubbies are obviously different.
Speaker 2 (07:42):
What's your best book?
Speaker 3 (07:45):
Funny enough that you get your head out of the sand.
I really liked that. I had to really fight with
a publisher over the name of it, and I sort
of put my foot down a week worse. Yeah, they
wanted to call it like sort your money at first,
or I don't know whatever it was anyway, but.
Speaker 2 (07:59):
Yours has got it's a bit well, it's more catchy
as opposed to sorting your money worries well, and.
Speaker 3 (08:05):
I kind of wanted to take the heaviness out of
managing the money. And there's lots of things you can
fill out. And interestingly, back then, I did I don't know,
like one hundred radio shows around that book. I did
tons and tons of radio and almost every radio announcer
said I'm up to page fifty five and I filled
out all this stuff and so that was kind of
cool about it.
Speaker 2 (08:22):
It's all good. Yeah, I like that book. So you do.
That's we're going to go with. Get your hit out.
How many years ago was that?
Speaker 3 (08:28):
Gosh, now to see I'm no Spring Chicken. I've had
it over.
Speaker 2 (08:34):
You are Spring Chicken when you wrote it, Ah, probably.
Speaker 3 (08:37):
Much closer than I was now. Maybe seventeen years ago
or something like that.
Speaker 2 (08:40):
Wow, oh good. Yeah, Okay, So, look, we want to
hear from you because there are a lot of people
who I am more often at talking to people who
who sort of say, look, I think I've just about
given up on the idea of owning my own house,
and yeah, I think, yeah, it does feel a bit
grim when people say that. If you're one of those
(09:01):
people who feel your optimism on house on property owner
is waning, we'd love to hear from you because Lisa
might have some suggestions and it won't include the expression
and get your head out of the sound, but it
might be you know, maybe it's not too late. I wait,
hundred eighty ten eighty. I mean there probably is a
time when it is you push the envelope, isn't it.
For instance, if you're sixty five and you're about to
(09:23):
retire and you haven't bought a house, yeah, I mean
that's problematic.
Speaker 3 (09:26):
Yeah, And it's problematic if you haven't got any savings either,
you know. So I mean I kind of I just
sort of feel that you should just focus on putting
some money together. So whether it's saving for a house
deposit or you you save enough a house to posit
you say, well, I don't want to buy a home,
I'll buy an investment property. Or then you go, oh,
maybe I don't want to do that either. I'll put
them to the share market and you'll keep saving. And
then I guess that's okay too. But I think it's
(09:48):
you want to get to that point in life where
you when you're around retirement, then idealy you can afford
to live in your own home, because again it's that
security of tenure and not worrying him to worry about
the landlord.
Speaker 2 (09:59):
Okay, I wait one hundred eighty ten eighty text nine
two nine two. Is there a time where you think
it's better to give up in the dream of owning
your own home? And what it actually is it ever
an equation where you could look at that and it
would be cheaper to rental, or no? Is it always
better and it.
Speaker 3 (10:18):
Can be cheap at rent. I rented for a long time.
But what I did is I built my property portfolio
because I decided that where I wanted to live didn't
make sense for me to buy or to own, So
I just rented long term and then just built up
my portfolio. And then I got to the point where
I sold a couple of rentals and bought my own home. So,
you know, I think it's just having a bit of
a strategy rather than you know, as they putting a
head in the sand and thinks all too hard and
(10:40):
you know that you've got to have some you know.
Really it's about thinking about the longer term.
Speaker 2 (10:44):
I guess the thing for people would be if you
get to this particular point when you've got such a
massive loan, because for instance, the Auckland property market is well,
it depends on the choices you're making as well, because
if you want to go for the neighbor if you
want to buy in the neighborhood where you've been renting,
you might be in for a shock. But you do
have to sort of sometimes change your goals.
Speaker 3 (11:02):
Yeah, and even if you get to retirement and you
still have a big more and let's say that you
do own in one of the major centers, you might say, Okay,
well what I'm going to do is I'm gonna move
out of Aukland, downsize, buy something for half the amount
of money, and you might have little or no mortgage.
Speaker 2 (11:17):
Okay, So we want to hear from you have you actually,
are you one of those people who've made a decision
that you might just rent or you might have to
rent for the for the rest of your life because
you're pessimistic about the idea of buying what you want,
or are you someone who's decided, actually, you know what,
I don't mind renting. Of course, I'm going to buy
somewhere in a market where I can afford it and
start to building a property portfolio that way. Give us
a call on eight hundred eighty ten eighty if you've
(11:40):
got any questions about getting started, because I think a
lot of the time the thing that stops people doing
this because they think it's too late, and that's probably
a major sort of block in terms of people getting
your heir, doesn't it.
Speaker 3 (11:52):
Yeah, well, that's right, because you could also put quite
a bit of money and put maybe ten percent of
what you ined to keep you savor too. If you
did that for long enough, then you'd be in quite
a good position by the time you retire. If you
started young enough and you did enough of it, you'd
been in quite a good financial position by the time
you retire. So it's just something.
Speaker 2 (12:06):
Yeah, Well, I guess the question is to be. People
are listening going, well, I haven't done it from a
young age, and or people have done it from a
young age and they used it to maybe get into
their first property, so at least they've started in that respect.
But it's never too late to do something, is it?
Speaker 3 (12:20):
And I guess that's my point, right, it's just doing something,
and it's just making a choice and going you're right,
I'm gonna, you know, just not spend so much money
on whatever it is, and you just put a bit
of money aside. And I think also too, we underestimate
the power of compounding interest over time, so how your
money compounds and grows over time because you think it's
(12:40):
not a lot. You know that you're only saving one
hundred dollars a month or whatever, but you'd be surprised
what it grows to over time.
Speaker 2 (12:47):
Okay, have you left it too late or do you
think you have? And you want a bit of advice
or to share your experience with us, then give us
a call. My guess is Lisa Dudson. She's a financial advisor.
I think we still officially call you a financial.
Speaker 3 (13:01):
Advice That's a reason why can't I I'm just not
a regulated financial advices sell any products.
Speaker 2 (13:06):
Yeah, but we won't be giving specific financial advice because
that's just the white rolls with the general sort of
whether radio show. But if you've got any questions and
you want to get a little bit of guidance, we'd
love to hear from your eight hundred eighty ten eighty
or to share your story on whether it was too
late and you've given it a crack and you know what,
turns out it wasn't too late eight hundred eighty ten
eighty text nine two ninety two. This is the weekend
(13:26):
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Lisa Dudson. We'll be back in just a moment. Get
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at Harbor Asset dot co dot nz. Yes, and welcome
(14:31):
back to that we can collect a smart money. My
guest is Lisa Dudson, author of many books, including Just
for Fun that title get your Head out of the Sand.
We've got a few callers lined up, which we'll get
onto in just a moment, because we're talking about when
is it too late to give up on the dream
of home ownership? And I still want to find a
better way of summing up that topic because it just
sounds so bloody sad, But anyway, when is it time
(14:53):
to adjust your priorities on home ownership? There's there's a
nice sort of touchy feely way I mean, it does
sound corporate speak, doesn't it anything? I'll stick it in.
I'll stick it in to chat GPT in the break
and say how do I phrase the question and see
what it comes up with. Anyway, let's take some calls.
Speaker 4 (15:10):
Michael, Hello, Hey, afternoon everybody.
Speaker 6 (15:13):
How are you good?
Speaker 2 (15:14):
Thanks?
Speaker 4 (15:16):
So I'm in a bit of a fortunate position. I've
recently just moved back from Australia. We had a couple
of rinkle property rather there it was sold, so it's
set me up in a good said, I've been through
a breakup. I own my own home now in wronger
mortgage three. But what I'm trying to sort of work
out is is it better off to try and build
(15:37):
a property portfolio moving forward in my life or is
it better to invest in stocks with money or leave
it in a high interest account.
Speaker 2 (15:48):
Share market or property.
Speaker 3 (15:49):
Yeah, I mean I probably wouldn't go the high interest
account because obviously that's probably going to be coming down
a wee. But I think you unless you're getting pretty
close to retirement and you can't cope with any risk,
I think the smarter ways of dealing with it, and
so really, you know, property versus shares, the great thing
I love about property investment is the leverage factor. But
with leverage comes more risk. The great thing about the
(16:11):
sheer market is diversification and liquidity. And you know, generally
what I'm finding with a lot of my clients, I'm
suggesting that they, you know, consider maybe both, maybe not
both right now, but you know, both in the portfolio
because then you've got leverage, you've got a bit of risk. Either,
you've got some divestication, you've got liquidity, you've got you've
kind of got all your bases covered. But a lot
of it also depends on age and stage of life,
(16:33):
brisk profile, how much you've you know, you've got to
invest in terms of a lump some more a regular income.
So there's quite a lot of things to be going
through with it, you know, and and of course I
think you know, absolutely get some good advice.
Speaker 4 (16:45):
Yeah, so it's probably been to speak to us on
as you and vit and actually get a decent.
Speaker 6 (16:53):
Yeah.
Speaker 2 (16:54):
Absolutely, I'm impressed Michael, because you've mentioned you've been through
a related I think you been through a breakup, but
you've got your own house all goodge free, and I
was thinking, well, that's of course, that's one way to
do a lot of your your own wealth is to
split up in a relationship, isn't It can be very costly,
so it wasn't handy. Yeah, anyway, I got on you. Thanks,
(17:15):
thanks for your call. Yeah. I mean that's the perennial
decision for any investor, isn't it if you have a
bit of money or you want to make some property
or shares. And look, I guess if you'd bought Berkshire
Hathaway back when they were starting out, you'd be going
shares all the way.
Speaker 3 (17:29):
Yeah, yeah, well that's right. And also to again, you know,
you can do both. It just comes down to what
you've got to work with, time frames, risk profiles. Some
of my people that I've worked over the years absolutely
love property, would never go through the shaar market, and
some will won't go near property, and some do a
bit of both. So sometimes it comes down to your
personal preference as well. I think both can do well
(17:50):
for different reasons.
Speaker 2 (17:51):
Yeah, and the once bit and twice shy possibly with
people who've had their well. Actually, there would have been
plenty of people who got burnt in property if they
mortgage themselves to their health in the last.
Speaker 3 (18:00):
Few Oh, absolutely you bought it in a couple of
years ago, and you have had high interest rates and
them it's come down you you'd be hating life, right.
Speaker 2 (18:07):
Yeah, right, let's take some more calls. Kate, Hello, Hello.
Speaker 5 (18:12):
How are you? Lisa? And Tim? Good?
Speaker 2 (18:13):
Thank you? Good things? Yeah, where you go?
Speaker 5 (18:16):
I love the title of your book, Lisa.
Speaker 6 (18:20):
Thank you.
Speaker 5 (18:20):
I'm okay because I'm going to affirm that myself. At
fifty four, I had about less than twenty thousand dollars
in the bank and thought, dear God, if I'm going
to end up a bag lady if I don't do something.
So I was in Australia at the time. I decided
that I'd go to the Northern Territory, find a find some.
Speaker 6 (18:41):
Sort of job.
Speaker 5 (18:43):
Seven years later I came back to New Zealand, I
bought my first house and seven years later I'm mortgage free.
Speaker 3 (18:53):
Oh well done me. See that's a pretty impressive story.
Speaker 5 (18:58):
Okay, how you don't have to be too old or
too late to do something like that?
Speaker 2 (19:05):
Can I ask, roughly what aide you were when you
disappeared a little territory and what you did there before
you that got you to come back and buy get into.
Speaker 5 (19:12):
It sixty four. When I went over, I did subcontract
work administration for one of the subcontractors, put my head down,
works for seven years, came back to New Zealand and
twenty fifteen, bought a house in twenty sixteen and became
(19:34):
a mortgaitree last year.
Speaker 2 (19:36):
I'm assuming you must have been earning a reasonable income or.
Speaker 5 (19:41):
It was a regional income. It wasn't huge because I
wasn't working directly with you know, like BP or rear Tinto.
Speaker 2 (19:51):
Are you working in the mining sector?
Speaker 7 (19:53):
Whar Yeah, exactly.
Speaker 3 (19:55):
And I guess there's a bit of sacrifice there because
you know, the little on territories may not necessarily be
number one place that you want to live, but you
go there maybe to get ahead financially, and and I'm
sure you are pretty careful about every dollar that you
spent to make sure that you spent it, you know,
really wisely and put as much as you could into
you know that saving for that deposit and then paying
that mortgage down.
Speaker 5 (20:16):
Very much so, and that's what idea is. I mean,
I realized, as I said, it's sixty four, I've got
to do something. I've got to change something.
Speaker 2 (20:24):
Yeah, did you how did you find those seven years
in the Northern Territory.
Speaker 7 (20:28):
I loved it, absolutely, love.
Speaker 2 (20:32):
Was that because you were the work was good.
Speaker 4 (20:34):
But yep, it was great.
Speaker 5 (20:37):
You know my sisters, I was settling, I was my forties.
Speaker 2 (20:41):
Fantastic. Good on you. And that's a big, bold decision
to do something quite radical, but there we go.
Speaker 3 (20:45):
Yeah, but that's my point, right, It's about you know,
if you make something important enough and you get super
focused on it, it's absolutely amazing what you can actually
achieve when you you know, when you decide that you
really want to, you know, do something so well done.
Speaker 2 (20:58):
Yeah, good on you, Kate. Thanks for your call. Really
appreciate it. Call again, Kevin Goda.
Speaker 7 (21:04):
Good and how I am good things, just like at
least his opinion on something. I'm pretty much in the
perfect position that you've been describing. I'm sixty seven, so
obviously i'm superindo a new it earnt. But I'm still
working because I like working, and I'm in the position
of whether I continue to rent or whether I buy.
(21:27):
I've been a homeowner probably for the last forty five years,
but circumstances conspired. But now I'm in the position where
I've got yesh, And that's on term deposit, and I'm renting,
and my options are to use that seven hundred k
(21:49):
to buy my own place, and the pros and cons.
I mean, if I buy a property for seven hundred
K and stay renting and rent that out, rent my
property out for five hundre ndred dollars a week, that's
less than four percent return on my money. Whereas if
(22:10):
I leave that seven hundred k in the bank, I'm
getting five percent return on my money with no hassle.
Five buy a property and rented out, I've got issues
with tenants, I've got issues with freights. So I've got
an institution with insurance, peers and maintenance. Yeah, there's renting.
Speaker 3 (22:28):
Yeah, but you've got a couple of things to think
about there. So one is that you might be getting
five percent on a team deposit at the moment, but
I would be stunned if in twelve months time that
you're getting five percent and you might be getting three
or four percent, right, So that's that's the first thing.
Because you know money and cash and turned deposits often
you know, keeps both paced with inflation. Just you might
(22:50):
have when you're talking about four percent return on having
a rent property that that's potentially what you're talking about
is like your gross yield or your cash return before tak.
Speaker 7 (22:59):
No, that's just out with seven hundred thousand. I was
getting five hundred a week. Yeah, but yeah, its me
three point seven percent or something. That's before repairs and
maintenance rates, insurance all that sort of.
Speaker 3 (23:11):
Yeah, of course, but remember that that house, that seven
hundred thousand dollars house grows in value over the years.
Speaker 2 (23:19):
That's my stage.
Speaker 7 (23:20):
Yeah, yeah, I'm yet, Lisa. I understand that, but it
does grow in value. But when you're sixty seven years
old and you're looking down the barrel at eighty years old,
I don't care about capital growth. I mean, it's not
as if I'm going to buy buy a place, let
it increase for two hundred thousand and go buy a farm.
I don't really care about capital growth. I just just
(23:42):
at that stage in life.
Speaker 3 (23:44):
Yeah, I understand, but just you know, be mindful to though.
You know we often say that, but then you know,
there's a lot of people that live to their nineties
and will past that, right, so you know, you still
could have a good another thirty plus years here, and
then you might be having a slightly different view on things.
Speaker 2 (23:59):
When you get to eighty five and you think I've
only planned to live for a couple more years, you
might be going might might a few more years on that, actually, Kevin.
The other thing is as well, you've mentioned how problematic
it is or the challenges of owning property with managing
tenants and insurance and stuff like that. But there are
ways to mitigate that, because most advice I've heard on
this show is that if you are at first time landlord,
(24:21):
then you'd at least get a property manager to look
after that, and you'd have to budget that. But that's
one there's one major well that's right, and it.
Speaker 3 (24:27):
Could be that you you know, you might design to
buy a property for five hundred thousand dollars and put
two hundred thousand dollars into the share market. You know,
it also depends on what sort of income requirements you
need any investments right now. Because you said you're still working,
you may be continuing to save from what you're earning.
So you know, I would highly recommend that you go
and get some financial advice and just think it through
(24:48):
a little bit more deeply.
Speaker 2 (24:49):
Just while we've still got Kevin on the line there.
When it comes to getting some financial advice, of course,
it is easier said than done in a way, because
people who can pay for financial advice generally, I mean, sorry,
it can be quite an expensive thing, can't it. Or
you have to have a poor folly of a certain
size generally, don't you.
Speaker 3 (25:07):
Yeah, a look around. I mean there's a few people
around like who like I do. I mean I work
more on a sort of financial guidance basis, you know,
because I don't have anything to do with any products,
and I charge an HOLI rate basis. Right, I don't
do complix you know, advanced planes or anything along those lines.
There's a few people out there like me, some financial
investment advisor, because you wouldn't be want to be going
see the trouble with financial advisor, it's quite a broad term.
(25:28):
Could be an insurance advisor, it could be a mortgage advisor.
And so you really need to go and talk to
an investment advice. And some investment advisors do ourly rate
work as well.
Speaker 2 (25:37):
Right, what's a range of what people would pay for
sort of hourly financial advice.
Speaker 3 (25:41):
Yeah, we're probably talking three four hundred dollars. You know,
you can get a lot done in an hour or two, right.
Speaker 2 (25:46):
And I guess if you're talking about we're to six
seven hundred thousand dollars, a few hundred bucks to get
some advice which will help guide you, is probably not
the worst, not the worst expenditure.
Speaker 3 (25:57):
I would think it's fairly cheap, but.
Speaker 2 (25:58):
Cheaper than a bag from Gucci.
Speaker 3 (26:00):
Yeah, I'm not sure that they'd be buying a bag
from Gucci.
Speaker 8 (26:03):
You just saying no, I.
Speaker 2 (26:04):
Just jumped no.
Speaker 5 (26:05):
You know.
Speaker 2 (26:05):
The reason I thought of that bizarre tangent, tangential thought
was because I was watching the marathon in Paris, and
of course we've we've been in Paris not long ago,
and they ran past the Gucci store and I thought,
there's a shop I'm not going to be going into
in a hurry. And actually, what was the other one?
There was the who is is it? Louis We Tom?
Their store is? It was in the shape of a
(26:27):
Louis We Tom bag. Ah, right, okay, And I don't
know that's so I just sort of thought, not my
stores either. No, I'll check your handbag on the way out.
I don't know what I'm talking about.
Speaker 3 (26:39):
Now.
Speaker 2 (26:39):
I've just got to take a moment for a couple
of Tina lie down twenty three minutes to sixth though,
if you want to pick Lisa Dudson's brains on whether
it's too late for you or have you given up,
then maybe we can give you a bit of inspiration
to actually think, you know what, Let's get our heads
out of the sand. To use the title of Lisa's
one of Lisa's early book the first book, the second one.
There we go. Okay, I'll know to find out what
(27:00):
the first book was called in the moment, but we'll
be back in just to take twenty three minutes to
six News Talk said be welcome back to the Weekend Collective.
This is smart Money. My guest is Lisa Dudson. She's
a financial commentator, author and not a specific financial advisor
in terms of directing your particular investment, but she knows
(27:21):
a fair bit about this stuff. And so if you've
got any questions, give us a call on I eight
hundred eight ten eighty And as I say, no specific
financial advice. But the question we're exploring at the moment
is when is too late too late when it comes
to changing your financial outlook and investing in perhaps property
or your own house. I weight one hundred eighty ten
eighty right, let's carry on jan Hello.
Speaker 8 (27:44):
Oh hi, do at Lisa and Tim. I don't know
whether you know the answer to this, but if you're
a single person and you didn't get her partner who
tellson to in their own home and you do, what's
the term that you can live together?
Speaker 2 (28:07):
The fact.
Speaker 8 (28:09):
Before taken? If it breaks up, then they can claim
half for something.
Speaker 3 (28:14):
Of your Okay, So basically, if you've been together for
three years, three years more than three years three years
and more, then technically your partner has the ability to
access half of your assets unless you form a legal
agreement that says what yours is yours and what there
(28:36):
is theirs. So that's a really smart thing to be doing,
is getting some legal advice because I have. Yeah, it's
essentially a prenup.
Speaker 2 (28:45):
Yet, even if you're not getting married, if you if
if that person moves in with you, you need to
spell out the rules because you need to look after
your own interests just in case it doesn't work out.
Speaker 3 (28:54):
Yeah, and you'd be amazed how often I've heard stories
over my twenty five year career in this industry of
three years and one week, you know, one week past
the three years and someone says, oh, have half of that,
thank you, one moves out. Sleep you do it. You
just just look, it'll cost you a little bit of
money to go and you know, get the legal advice,
but it is super important.
Speaker 8 (29:13):
Yeah, definitely, pren up over rise the law.
Speaker 3 (29:18):
Well you kind of contract out of the law essentially.
So that's that's you know, that's essentially what people you
know talk about it. It's a form of a prenup really.
Speaker 2 (29:26):
It is actually quite a complex area of law jam.
But yes, you can contract out of it up to
a point. Because there are people who had very long relationships.
You're trying to rely on a twenty year old prenup,
and the courts will say, well, hold on a minute, Yeah,
you've built a life together. We're going to set some
of that aside. But yeah, definitely don't don't get caught
out by it sneaking up on you suddenly three years
(29:48):
and then half of what's his as yours and yours
as hers or whatever. Yeah yeah, yeah, okay, soy protect
your interests on that one. A few texts on the
is it too late? There is no hope as in
the fifties, banks wouldn't loan due to age. So even
though a work hard, it can't save buy a house.
Speaker 3 (30:07):
The slady we just spoke to you said that was
not she got a loan, right.
Speaker 2 (30:10):
It depends on your financial circumstances. You're looking at the
two million bucks with no deposit, then, no, that's right.
Speaker 3 (30:16):
Yeah, I mean I don't. I don't buy that at all.
I've seen people get you know, loans in their fifties,
so it's just really about your personal circumstances.
Speaker 2 (30:23):
Yeah, let's take another court where we're up to Andrew.
Speaker 6 (30:27):
Hi. Yeah, Hi, I've got some in laws that had,
you know, were very successful at certain periods of their life,
but their business sort of failed. And yeah, I actually
(30:48):
had to buy them out by their business there and
their house and everything else.
Speaker 2 (30:55):
Why did you have to buy them out?
Speaker 6 (30:58):
Well, my wife told.
Speaker 2 (31:01):
Me that I needed Okay, right, okay, okay, okay. The
way you put that, you just sort of, yeah, it
sounded a little less random than you just said.
Speaker 3 (31:10):
Right, So basically their business got into trouble and you
actually ended up buying their business.
Speaker 6 (31:16):
Not here in New Zealand, it's over in Spain. But
nonetheless they want to you know, they really want to
be self sufficient.
Speaker 2 (31:26):
And oh, you mean they want to get back up
on their feet again.
Speaker 6 (31:33):
I've sort of put them back up there. But they
feel oh no, obviously, you know, they feel a bit
sort of you know, I mean of proud people, right,
and they did have a very successful business. But I
mean they're in the late fifties. I mean, is it
(31:58):
possible for them to you know, well back in the well.
Speaker 3 (32:06):
I mean again, you know, you're saying that they're in Spain,
so I don't know what this you know, what the
environment is like in Spain, but you know, fifties, I
mean I'm in my fifties, still pretty young.
Speaker 2 (32:15):
I guess my question is yeah.
Speaker 6 (32:17):
Yeah, yeah, yeah, yeah, yeah, yeah yeah. Look, the environment
is very low interest rate. Well, they have a rolling
income from a small business that they have, and yeah,
it's just sort of like, well.
Speaker 3 (32:35):
You know, well, it seems to me that if they
you know, sounds like they're still got a bit of
a base. So if they're motivated and they're focused, it
doesn't seem to be any reason why they shouldn't be
able to because you know, late fifties are still very young.
Speaker 2 (32:49):
Also, Andrew I guess if you're in a position where
you can bail your in laws out in a business
in Spain, then you probably know a thing or two
about money anyway, don't you.
Speaker 6 (32:59):
No, I don't not at that age.
Speaker 2 (33:02):
What what age?
Speaker 6 (33:03):
Because well, I think once it gets to a point
in time, I mean, you know, you just taken this
simile mortgage at what twenty years?
Speaker 3 (33:13):
I mean, yeah, Well, look, I've got two friends of
mine in the early eighties who are still doing property deals, right,
so there's both super sharp and one's bought three properties
in the last couple of years now obviously there and
you know they've got quite a good financial base. And
then that particular person is not in New Zealand. But
I just think when there's a world is away.
Speaker 2 (33:35):
Okay, hey, thanks for you call, Andrew.
Speaker 7 (33:36):
It was.
Speaker 2 (33:37):
That's an interesting one, isn't it. Hi, Lisa, we had
property investor hobbyists, hobbyists. We came to you for advice,
confirmation on whether I could afford to retire at sixty one.
My wife has just reminded you said go for it
and you'll never run out. Well, you're correct. Now we're
seventy seven and living the good life. Always en George
your books and listening to you. That's from Donald.
Speaker 3 (33:58):
Oh that's very nice.
Speaker 2 (33:58):
I think worried where that text was going for a second.
We came here for advice and it's all to tears.
Speaker 3 (34:04):
I have not I did good.
Speaker 2 (34:06):
I did pre read that anyway. Another one here says
high term. Not many people talk about the cost of rates,
insurance and maintenance versus rent. And actually that is something
I was even chatting about because we're getting some stuff
changed to our place, and I said to one of
the builders. You know, I'm mates with my builder, but
(34:28):
one of the guys's working from we're just talking about
and I said, God, it's never going to end and
he said, no, it's not either, but of course he's
a builder recon But that is a reality of owning
a house is that you're always going to have things
you have to work on, I guess, unless it's brand
new and spiffing.
Speaker 3 (34:43):
And look, if you can get through your life and
rent and then build up your Keipi saver and an
investment portfolio so you've got plenty of money to be
able to afford to rent and have a lifestyle, then
you know, owning a home is not necessarily no, super important.
But the reality is that I've seen is that for
most people that they're just the compulsory savings nature of
(35:04):
a huart is actually super valuable because everyone says, oh, no,
you know, I won't buy a home, But I often
find those people get to later in life and they
don't have much to financially support themselves.
Speaker 2 (35:16):
Somebody else has written that said, b there are cheap
homes around, but people don't want to move to areas
in order to get a cheap home, for example, two
bedroom ninety nineties home in town and in Vicago two
ninety k in Auckland eight ninety k. Well that as
an argument also for considering whether you might want to
just buy an investment even if you don't want to
(35:37):
live in it.
Speaker 3 (35:37):
Yeah, yeah, absolutely, Yeah. So again it keeps coming back
to it's not necessarily just about the home. It's about
building some kind of investment portfolio that to provide you
with some income and some security when you get older.
Speaker 2 (35:51):
When you were looking at property in your property investing
days and choosing, did you did it take a while
for you to discipline yourself to choose a property based
on the numbers rather than whether it looked good in
the real estate magazine.
Speaker 3 (36:05):
Not really, probably because I've always had spreadsheets.
Speaker 2 (36:09):
So I was I saw you were a numbers.
Speaker 3 (36:11):
Yes, I was numbers, you know, like I just have
a little spreadsheet and you know, and there's the days
before trade me and I'd go round and I'd look
at the in the paper and you'd write and ring
that by age and get some numbers. And then I
deal with these numbers. And then i'd have a clipboard
and I'd drive around Auckland and on the weekend, and
then I just put off as them based on you know,
the numbers. It's totally about the numbers.
Speaker 2 (36:31):
Yeah. Well, I mean I guess so you haven't had
to battle that. But for people who want to look
at something, I think people make a mistake of thinking
how would I feel about living here, when in fact
maybe you've got to get away from the esthetic and
just think how does this stack up? Yeah?
Speaker 3 (36:46):
And I think the other thing that you find, you know,
talk to agents, and I took to my friends that
are investors and traders, and they say, oh, you know,
people don't want to buy you know, the shitty looking houses.
You know, they want them all done up. And renovated.
Speaker 5 (36:56):
Right.
Speaker 3 (36:56):
But the thing is is, if you do buy a
house that has got an overgrown lawn and you know
it does have the nineteen seventies or eighties wallpaper, it's amazing,
you know how much cheaper you can buy that house.
And if you put in a bit of grit over
a few years, you can do a lot of that
renovation work yourself. Maybe not your kitchens, in your bathrooms,
but certainly you're painting and you're tiling up the backyard
and you know some of those basic things.
Speaker 6 (37:17):
Right.
Speaker 3 (37:17):
It's a really great way to get ahead financially, but
there's a trade off.
Speaker 2 (37:20):
Yeah, that's probably why I do my own plastering, and
but I must have been I'm gritting my teeth about
the idea of doing a quite a complex job right now.
I'm like, oh gosh, but you know what's better than
paying someone else to do it? As long as it doesn't,
of course, all fall off.
Speaker 3 (37:34):
At least now you've got YouTube, right, so you can
look it off on YouTube and get some great scation.
Speaker 2 (37:38):
Some of those videos from different hardware companies as well.
There's some great stuff out there. Hi, Lisa, My wife,
two children are living in a family farmhouse rent free
and Ernie, well that's okay, oh, family farmhouse rent free
and earn one hundred and thirty k combined. We'd love
to build or buy our own home, but get stuck
when we hear from people like you that we should
(37:58):
buy investment properties. We've saved two fifty k, but can't
decide what to do next. I guess they'll any guidance
which might steer them up and make a mind up.
Speaker 3 (38:08):
I mean the way that I kind of look at
it as I just go, you know, you're let's say
you're thirty and by the time you want to get
to sixty, and you want to have X dollars, And
it doesn't necessarily matter what you buy in terms of investment,
whether it's home, investment, property shares. It's just whatever you
do you want to get to that pot of money.
And it may be that you change the type of structure,
(38:28):
all the type of things that you own around. Like
like I was saying before, you know, I bought my
own home and then I sold it, and then I
ended up buying range properties for a number of years,
and then I re organized things again and then sold
a couple and then brought a home, so you don't
have to make a decision today what you do for
the rest of your life. It's just about moving yourself
forward so you're always growing.
Speaker 2 (38:47):
In money and make a decision.
Speaker 3 (38:49):
Make a decision now.
Speaker 2 (38:50):
Yeah, yeah, okay, hopefully that helps you a little bit. Anyway,
we'll be back in just a moment. It's seven and
a half minutes. It's the six News Talks that'd be.
It's my producer tire is loving the fact that I've said, yes,
we can have themed music of you, like if we're
talking about money, find some money songs and of course
there we have Abba. Always time for a bit of
a But don't you think you Lisa, I'm going through
(39:12):
a bit obviously. I've listened to a bit of air
because my Instagram, the feed has just thrown me a
whole lot of Ebba stuff at the moment, scar that
ending what goes back to a crush I had on
Agnefiel when I was eight years old. I think something. Anyway, Hey, Lisa,
if people want to catch up with you Acumen dot
co dot nz.
Speaker 3 (39:29):
That's correct.
Speaker 2 (39:29):
Yep, thanks very much. That wraps up the show. Thanks
my producer, Tyra roberts A Sunday at six is next,
and if you want to catch any of the hours
you've missed them go to go to iHeartRadio and look
for the Weekend Collective podcast. Have a great evening, I'll
catch you again shortly.
Speaker 1 (39:50):
For more from the Weekend Collective, listen live to News
Talk zed B weekends from three pm, or follow the
podcast on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talk SEDB.
Speaker 2 (00:10):
And welcome back to the Weekend Collective. This is smart Money.
By the way, I'm Tim Beverage. And if you've missed
any of the previous hours, you can go to look
where our podcasts come from. Go to iHeartRadio and look
for the Weekend Collective and you can catch up with
anything you've missed, or even on demand if you want
to go into the News Talk SIBI website. From three
to four we had Politics Central, a couple of interesting interviews,
(00:30):
one with Shane Jones about the way the gent tailors
are treating pricing and whether they are adding as a
cartel and gouging everyone when they can get away with it.
And we followed that up with an interview with Tama Portucker,
who's the Associate Minister for Housing about the number of
people relying on emergency housing has dropped by thirty two
(00:51):
percent in the last and six months, so and where
we're going with that as well. So and also of
course fascinating discussion with Greg McPherson just around you know,
the science around getting older and avoiding it can and
my guest, I don't know if she's interested in those
sorts of things. But for smart money is Lisa Dudson.
Are you do try and fight the signs of aging
(01:12):
at all? They see just a spring chicken yourself.
Speaker 3 (01:14):
Yeah, I don't know. I'm not much of a spring chicken,
you know. I think you certainly make an effort, right
because otherwise you see friends around you and they're all
falling apart, and you think, well, you've worked really hard
all your life to kind of have a bit more
freedom of choice when you get a little bit older,
and it's kind of I don't think going to be
ideal if your body's falling falling apart around you.
Speaker 2 (01:33):
Does do rich people live longer? I don't know if
we know much about that, because if you're wealthy, you
might tend to just indulge in too many glasses of
red fine French red wine.
Speaker 3 (01:42):
Yeah, And most people to get wealthy have to work
pretty hard, right, So that comes with some long oils
and some stress and often connecting your health. So I
mean that's probably a bit of a mixed bag, I think.
Speaker 2 (01:51):
Yeah, I'm a bit disappointed that I wasn't the Yukland
who won the forty four million, even though the odds
are so ridiculous. I'm lutto, but there's a part of
me that goes, why not me, damn it with someone else.
Speaker 3 (02:02):
I'm sure there's lots of people have been saying that
same thing.
Speaker 2 (02:04):
Yeah, anyway, Look, the first topic we're going to have
a chat about is I'm trying to find a way
of phrasing it so it doesn't sound so desperate, because
it does. It's quite common overseas for people to rent
for their whole lives. But somebody raised it the other
day about is there a time when you are better
to I don't want to. Let's maybe not the word
(02:26):
give up, when you are better to choose to rent
for your whole life rather than to aim to have
your own home. And there are people who actually do
that as a financial strategy anyway, because they put all
their all their attention into investing and making money elsewhere.
But it is something that we're going to see more
of that people are going to be renting for, you know,
(02:48):
just resigning themselves that I've left it too late. I'm
going to have to you know' that's my lot? Or
do you think there's always hope?
Speaker 3 (02:55):
I personally think there's always hope. And that's partly because
you know, I've been in financial services over twenty five
years now and I've seen some extraordinary things happen when
people get focused. So and so I just kind of
feel that you should never give up. And I think
it's tough that when you get to sort of sixty
five seventi ish you don't have your own home. Like,
(03:15):
it's okay if you if you have invested really well
and you can afford to pay rent for the rest
of your life, but often with a lot of people,
they haven't and you've got you know, two things that happens.
One is that you don't you haven't actually invested all
your life, so you don't have those funds. And the
second thing is is you have a bit of lack
of security around where you live. And you know that's okay,
(03:39):
and you're you know when you're younger, but I think
when you're in you're sort of collecting the New Zealand
super Do you want to be in a situation where
you don't know whether the land was going to sell
the house.
Speaker 2 (03:48):
Also incredibly disciplined too, if you are going to rely
on simply investing your money anywhere, but in your own
property because for many New Zealanders that's the one sort
of bit of enforced sort of capital gain that you
ever see as your own house or getting into it.
Speaker 3 (04:07):
And even yeah, and I think lock capital will gain
through you know, keeping pace with inflation and more than that.
But the key thing I like about getting into your
own home is the compulsory savings of it. Yeah, I
think it's quite different saying oh, I'm just going to
rent for life and put a save a bit of
money versus actually maybe buying a rental property and then.
Speaker 2 (04:24):
Well there's a halfway house on it, isn't there Because
there are people who decide that going to rent where
they want to live and then they still invest in property,
and that would if you can, I mean, it feels
it would feel like the wrong approach to take that
you're never going to have a stake in property in
some way. But I don't know if I'm just being
(04:46):
a bit sort of singular vision on that.
Speaker 3 (04:48):
No, I don't think so, because again, you know, you
see too many people, I think, when they get to
that age of sixty five plus who don't have the
security of knowing they have a home for the rest
of their life and being able to afford to comfortably
live even if they decided to rent, to be able
to comfortby rent for the rest of your life. So
I you know, I think it's always really important to
(05:09):
keep focused on buying a home in some shape or
form and never give up hope on it.
Speaker 2 (05:14):
What are some of the sort of turn around stories
you've witnessed.
Speaker 3 (05:18):
Or things like, you know, I had this lady come
to see me years ago, for instance, and she'd come
from a tough background, like we're talking, you know, gangs,
you know, all sorts of things. She had two kids
to two different fathers. She was living with her grandmother
because you know, just the tragedy of the situation. She
wasn't anyway, to cut a long story short, she came
to see me, and this is probably going back a
(05:38):
dozen years or so ago now, and she had just
got really focused, had a couple of jobs. Grandmother helped
out looking after the kids. She put herself for a university,
and she came to see me and she had seventy
thousand dollars and she'd saved enough to get into her home.
This is in road rual, like you know, to say,
twelve fifteen years ago. You know. Now she was from
you know, everything that could have been tough in someone's background.
(05:58):
You know, she tacked all the boxes and so, you
know that was super impressive.
Speaker 2 (06:02):
And so does she see you part way through the process.
Speaker 3 (06:05):
Well, funnily enough, she got one of my books and
she bought it in to see me, and it was
all kind of dog egged and you know, and she'd
kind of you she'd got someone given that to her
and she just picked it up on it. You know,
sometimes it's just the right time, and she just read
it and she read it and she read it, and
it just got her focused on she just kept saving
towards that house deposit. So it was a you know
what book that was. Yeah, it's called Get your Head
(06:26):
out of the Sand, which is one of my first
one actual books, I right, which I really liked the
title of it.
Speaker 2 (06:34):
It's quite a good title actually, and sounds like it
might have been the perfect title for her.
Speaker 4 (06:38):
Yeah.
Speaker 3 (06:38):
Sometimes it just, you know, when you want to know something,
sometimes it's just the right moment the right information appears right,
you know, And so I've got you know, there's lots
of different stories like that I've come across over the years,
and it's just deciding that you're going to do things
differently because something's super important to you.
Speaker 2 (06:54):
How many books have you written about?
Speaker 5 (06:56):
Eight?
Speaker 3 (06:56):
Is eight?
Speaker 5 (06:57):
Yeah?
Speaker 3 (06:57):
Well it's good memory.
Speaker 2 (06:58):
Yeah, I just remember when you said you sort of
said it with a sense of pride that embedded itself
in my brain. I thought, it's not that's one or
two books. It's on Martin Horse because he's written how many.
Speaker 6 (07:09):
I don't know.
Speaker 3 (07:09):
He's probably written more than me. I love Martin. I
think he's great.
Speaker 2 (07:12):
Yeah, but no, it's I can't remember how many he has,
but he's he's got quite a bit. Nice. But the
thing when you're writing a book on being smart about money,
how do you I mean, when you get to book
number four or five, are you just what do you do?
You just re repackaging ideas for the for the environment
or do you come up with the new ideas? And
I haven't thought about that. Actually, I'm just going to
(07:32):
stick that in your book.
Speaker 3 (07:34):
Probably a bit of both, you know. And I've written
half on property and half on sort of personal finance.
So you know, some have got case studies, some haven't
got case studies. The case stubbies are obviously different.
Speaker 2 (07:42):
What's your best book?
Speaker 3 (07:45):
Funny enough that you get your head out of the sand.
I really liked that. I had to really fight with
a publisher over the name of it, and I sort
of put my foot down a week worse. Yeah, they
wanted to call it like sort your money at first,
or I don't know whatever it was anyway, but.
Speaker 2 (07:59):
Yours has got it's a bit well, it's more catchy
as opposed to sorting your money worries well, and.
Speaker 3 (08:05):
I kind of wanted to take the heaviness out of
managing the money. And there's lots of things you can
fill out. And interestingly, back then, I did I don't know,
like one hundred radio shows around that book. I did
tons and tons of radio and almost every radio announcer
said I'm up to page fifty five and I filled
out all this stuff and so that was kind of
cool about it.
Speaker 2 (08:22):
It's all good. Yeah, I like that book. So you do.
That's we're going to go with. Get your hit out.
How many years ago was that?
Speaker 3 (08:28):
Gosh, now to see I'm no Spring Chicken. I've had
it over.
Speaker 2 (08:34):
You are Spring Chicken when you wrote it, Ah, probably.
Speaker 3 (08:37):
Much closer than I was now. Maybe seventeen years ago
or something like that.
Speaker 2 (08:40):
Wow, oh good. Yeah, Okay, So, look, we want to
hear from you because there are a lot of people
who I am more often at talking to people who
who sort of say, look, I think I've just about
given up on the idea of owning my own house,
and yeah, I think, yeah, it does feel a bit
grim when people say that. If you're one of those
(09:01):
people who feel your optimism on house on property owner
is waning, we'd love to hear from you because Lisa
might have some suggestions and it won't include the expression
and get your head out of the sound, but it
might be you know, maybe it's not too late. I wait,
hundred eighty ten eighty. I mean there probably is a
time when it is you push the envelope, isn't it.
For instance, if you're sixty five and you're about to
(09:23):
retire and you haven't bought a house, yeah, I mean
that's problematic.
Speaker 3 (09:26):
Yeah, And it's problematic if you haven't got any savings either,
you know. So I mean I kind of I just
sort of feel that you should just focus on putting
some money together. So whether it's saving for a house
deposit or you you save enough a house to posit
you say, well, I don't want to buy a home,
I'll buy an investment property. Or then you go, oh,
maybe I don't want to do that either. I'll put
them to the share market and you'll keep saving. And
then I guess that's okay too. But I think it's
(09:48):
you want to get to that point in life where
you when you're around retirement, then idealy you can afford
to live in your own home, because again it's that
security of tenure and not worrying him to worry about
the landlord.
Speaker 2 (09:59):
Okay, I wait one hundred eighty ten eighty text nine
two nine two. Is there a time where you think
it's better to give up in the dream of owning
your own home? And what it actually is it ever
an equation where you could look at that and it
would be cheaper to rental, or no? Is it always
better and it.
Speaker 3 (10:18):
Can be cheap at rent. I rented for a long time.
But what I did is I built my property portfolio
because I decided that where I wanted to live didn't
make sense for me to buy or to own, So
I just rented long term and then just built up
my portfolio. And then I got to the point where
I sold a couple of rentals and bought my own home. So,
you know, I think it's just having a bit of
a strategy rather than you know, as they putting a
head in the sand and thinks all too hard and
(10:40):
you know that you've got to have some you know.
Really it's about thinking about the longer term.
Speaker 2 (10:44):
I guess the thing for people would be if you
get to this particular point when you've got such a
massive loan, because for instance, the Auckland property market is well,
it depends on the choices you're making as well, because
if you want to go for the neighbor if you
want to buy in the neighborhood where you've been renting,
you might be in for a shock. But you do
have to sort of sometimes change your goals.
Speaker 3 (11:02):
Yeah, and even if you get to retirement and you
still have a big more and let's say that you
do own in one of the major centers, you might say, Okay,
well what I'm going to do is I'm gonna move
out of Aukland, downsize, buy something for half the amount
of money, and you might have little or no mortgage.
Speaker 2 (11:17):
Okay, So we want to hear from you have you actually,
are you one of those people who've made a decision
that you might just rent or you might have to
rent for the for the rest of your life because
you're pessimistic about the idea of buying what you want,
or are you someone who's decided, actually, you know what,
I don't mind renting. Of course, I'm going to buy
somewhere in a market where I can afford it and
start to building a property portfolio that way. Give us
a call on eight hundred eighty ten eighty if you've
(11:40):
got any questions about getting started, because I think a
lot of the time the thing that stops people doing
this because they think it's too late, and that's probably
a major sort of block in terms of people getting
your heir, doesn't it.
Speaker 3 (11:52):
Yeah, well, that's right, because you could also put quite
a bit of money and put maybe ten percent of
what you ined to keep you savor too. If you
did that for long enough, then you'd be in quite
a good position by the time you retire. If you
started young enough and you did enough of it, you'd
been in quite a good financial position by the time
you retire. So it's just something.
Speaker 2 (12:06):
Yeah, Well, I guess the question is to be. People
are listening going, well, I haven't done it from a
young age, and or people have done it from a
young age and they used it to maybe get into
their first property, so at least they've started in that respect.
But it's never too late to do something, is it?
Speaker 3 (12:20):
And I guess that's my point, right, it's just doing something,
and it's just making a choice and going you're right,
I'm gonna, you know, just not spend so much money
on whatever it is, and you just put a bit
of money aside. And I think also too, we underestimate
the power of compounding interest over time, so how your
money compounds and grows over time because you think it's
(12:40):
not a lot. You know that you're only saving one
hundred dollars a month or whatever, but you'd be surprised
what it grows to over time.
Speaker 2 (12:47):
Okay, have you left it too late or do you
think you have? And you want a bit of advice
or to share your experience with us, then give us
a call. My guess is Lisa Dudson. She's a financial advisor.
I think we still officially call you a financial.
Speaker 3 (13:01):
Advice That's a reason why can't I I'm just not
a regulated financial advices sell any products.
Speaker 2 (13:06):
Yeah, but we won't be giving specific financial advice because
that's just the white rolls with the general sort of
whether radio show. But if you've got any questions and
you want to get a little bit of guidance, we'd
love to hear from your eight hundred eighty ten eighty
or to share your story on whether it was too
late and you've given it a crack and you know what,
turns out it wasn't too late eight hundred eighty ten
eighty text nine two ninety two. This is the weekend
(13:26):
collective of smart money. I'm to beverage. My guest is
Lisa Dudson. We'll be back in just a moment. Get
on the blower. Twenty past five. Are you worried about
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at Harbor Asset dot co dot nz. Yes, and welcome
(14:31):
back to that we can collect a smart money. My
guest is Lisa Dudson, author of many books, including Just
for Fun that title get your Head out of the Sand.
We've got a few callers lined up, which we'll get
onto in just a moment, because we're talking about when
is it too late to give up on the dream
of home ownership? And I still want to find a
better way of summing up that topic because it just
sounds so bloody sad, But anyway, when is it time
(14:53):
to adjust your priorities on home ownership? There's there's a
nice sort of touchy feely way I mean, it does
sound corporate speak, doesn't it anything? I'll stick it in.
I'll stick it in to chat GPT in the break
and say how do I phrase the question and see
what it comes up with. Anyway, let's take some calls.
Speaker 4 (15:10):
Michael, Hello, Hey, afternoon everybody.
Speaker 6 (15:13):
How are you good?
Speaker 2 (15:14):
Thanks?
Speaker 4 (15:16):
So I'm in a bit of a fortunate position. I've
recently just moved back from Australia. We had a couple
of rinkle property rather there it was sold, so it's
set me up in a good said, I've been through
a breakup. I own my own home now in wronger
mortgage three. But what I'm trying to sort of work
out is is it better off to try and build
(15:37):
a property portfolio moving forward in my life or is
it better to invest in stocks with money or leave
it in a high interest account.
Speaker 2 (15:48):
Share market or property.
Speaker 3 (15:49):
Yeah, I mean I probably wouldn't go the high interest
account because obviously that's probably going to be coming down
a wee. But I think you unless you're getting pretty
close to retirement and you can't cope with any risk,
I think the smarter ways of dealing with it, and
so really, you know, property versus shares, the great thing
I love about property investment is the leverage factor. But
with leverage comes more risk. The great thing about the
(16:11):
sheer market is diversification and liquidity. And you know, generally
what I'm finding with a lot of my clients, I'm
suggesting that they, you know, consider maybe both, maybe not
both right now, but you know, both in the portfolio
because then you've got leverage, you've got a bit of risk. Either,
you've got some divestication, you've got liquidity, you've got you've
kind of got all your bases covered. But a lot
of it also depends on age and stage of life,
(16:33):
brisk profile, how much you've you know, you've got to
invest in terms of a lump some more a regular income.
So there's quite a lot of things to be going
through with it, you know, and and of course I
think you know, absolutely get some good advice.
Speaker 4 (16:45):
Yeah, so it's probably been to speak to us on
as you and vit and actually get a decent.
Speaker 6 (16:53):
Yeah.
Speaker 2 (16:54):
Absolutely, I'm impressed Michael, because you've mentioned you've been through
a related I think you been through a breakup, but
you've got your own house all goodge free, and I
was thinking, well, that's of course, that's one way to
do a lot of your your own wealth is to
split up in a relationship, isn't It can be very costly,
so it wasn't handy. Yeah, anyway, I got on you. Thanks,
(17:15):
thanks for your call. Yeah. I mean that's the perennial
decision for any investor, isn't it if you have a
bit of money or you want to make some property
or shares. And look, I guess if you'd bought Berkshire
Hathaway back when they were starting out, you'd be going
shares all the way.
Speaker 3 (17:29):
Yeah, yeah, well that's right. And also to again, you know,
you can do both. It just comes down to what
you've got to work with, time frames, risk profiles. Some
of my people that I've worked over the years absolutely
love property, would never go through the shaar market, and
some will won't go near property, and some do a
bit of both. So sometimes it comes down to your
personal preference as well. I think both can do well
(17:50):
for different reasons.
Speaker 2 (17:51):
Yeah, and the once bit and twice shy possibly with
people who've had their well. Actually, there would have been
plenty of people who got burnt in property if they
mortgage themselves to their health in the last.
Speaker 3 (18:00):
Few Oh, absolutely you bought it in a couple of
years ago, and you have had high interest rates and
them it's come down you you'd be hating life, right.
Speaker 2 (18:07):
Yeah, right, let's take some more calls. Kate, Hello, Hello.
Speaker 5 (18:12):
How are you? Lisa? And Tim? Good?
Speaker 2 (18:13):
Thank you? Good things? Yeah, where you go?
Speaker 5 (18:16):
I love the title of your book, Lisa.
Speaker 6 (18:20):
Thank you.
Speaker 5 (18:20):
I'm okay because I'm going to affirm that myself. At
fifty four, I had about less than twenty thousand dollars
in the bank and thought, dear God, if I'm going
to end up a bag lady if I don't do something.
So I was in Australia at the time. I decided
that I'd go to the Northern Territory, find a find some.
Speaker 6 (18:41):
Sort of job.
Speaker 5 (18:43):
Seven years later I came back to New Zealand, I
bought my first house and seven years later I'm mortgage free.
Speaker 3 (18:53):
Oh well done me. See that's a pretty impressive story.
Speaker 5 (18:58):
Okay, how you don't have to be too old or
too late to do something like that?
Speaker 2 (19:05):
Can I ask, roughly what aide you were when you
disappeared a little territory and what you did there before
you that got you to come back and buy get into.
Speaker 5 (19:12):
It sixty four. When I went over, I did subcontract
work administration for one of the subcontractors, put my head down,
works for seven years, came back to New Zealand and
twenty fifteen, bought a house in twenty sixteen and became
(19:34):
a mortgaitree last year.
Speaker 2 (19:36):
I'm assuming you must have been earning a reasonable income or.
Speaker 5 (19:41):
It was a regional income. It wasn't huge because I
wasn't working directly with you know, like BP or rear Tinto.
Speaker 2 (19:51):
Are you working in the mining sector?
Speaker 7 (19:53):
Whar Yeah, exactly.
Speaker 3 (19:55):
And I guess there's a bit of sacrifice there because
you know, the little on territories may not necessarily be
number one place that you want to live, but you
go there maybe to get ahead financially, and and I'm
sure you are pretty careful about every dollar that you
spent to make sure that you spent it, you know,
really wisely and put as much as you could into
you know that saving for that deposit and then paying
that mortgage down.
Speaker 5 (20:16):
Very much so, and that's what idea is. I mean,
I realized, as I said, it's sixty four, I've got
to do something. I've got to change something.
Speaker 2 (20:24):
Yeah, did you how did you find those seven years
in the Northern Territory.
Speaker 7 (20:28):
I loved it, absolutely, love.
Speaker 2 (20:32):
Was that because you were the work was good.
Speaker 4 (20:34):
But yep, it was great.
Speaker 5 (20:37):
You know my sisters, I was settling, I was my forties.
Speaker 2 (20:41):
Fantastic. Good on you. And that's a big, bold decision
to do something quite radical, but there we go.
Speaker 3 (20:45):
Yeah, but that's my point, right, It's about you know,
if you make something important enough and you get super
focused on it, it's absolutely amazing what you can actually
achieve when you you know, when you decide that you
really want to, you know, do something so well done.
Speaker 2 (20:58):
Yeah, good on you, Kate. Thanks for your call. Really
appreciate it. Call again, Kevin Goda.
Speaker 7 (21:04):
Good and how I am good things, just like at
least his opinion on something. I'm pretty much in the
perfect position that you've been describing. I'm sixty seven, so
obviously i'm superindo a new it earnt. But I'm still
working because I like working, and I'm in the position
of whether I continue to rent or whether I buy.
(21:27):
I've been a homeowner probably for the last forty five years,
but circumstances conspired. But now I'm in the position where
I've got yesh, And that's on term deposit, and I'm renting,
and my options are to use that seven hundred k
(21:49):
to buy my own place, and the pros and cons.
I mean, if I buy a property for seven hundred
K and stay renting and rent that out, rent my
property out for five hundre ndred dollars a week, that's
less than four percent return on my money. Whereas if
(22:10):
I leave that seven hundred k in the bank, I'm
getting five percent return on my money with no hassle.
Five buy a property and rented out, I've got issues
with tenants, I've got issues with freights. So I've got
an institution with insurance, peers and maintenance. Yeah, there's renting.
Speaker 3 (22:28):
Yeah, but you've got a couple of things to think
about there. So one is that you might be getting
five percent on a team deposit at the moment, but
I would be stunned if in twelve months time that
you're getting five percent and you might be getting three
or four percent, right, So that's that's the first thing.
Because you know money and cash and turned deposits often
you know, keeps both paced with inflation. Just you might
(22:50):
have when you're talking about four percent return on having
a rent property that that's potentially what you're talking about
is like your gross yield or your cash return before tak.
Speaker 7 (22:59):
No, that's just out with seven hundred thousand. I was
getting five hundred a week. Yeah, but yeah, its me
three point seven percent or something. That's before repairs and
maintenance rates, insurance all that sort of.
Speaker 3 (23:11):
Yeah, of course, but remember that that house, that seven
hundred thousand dollars house grows in value over the years.
Speaker 2 (23:19):
That's my stage.
Speaker 7 (23:20):
Yeah, yeah, I'm yet, Lisa. I understand that, but it
does grow in value. But when you're sixty seven years
old and you're looking down the barrel at eighty years old,
I don't care about capital growth. I mean, it's not
as if I'm going to buy buy a place, let
it increase for two hundred thousand and go buy a farm.
I don't really care about capital growth. I just just
(23:42):
at that stage in life.
Speaker 3 (23:44):
Yeah, I understand, but just you know, be mindful to though.
You know we often say that, but then you know,
there's a lot of people that live to their nineties
and will past that, right, so you know, you still
could have a good another thirty plus years here, and
then you might be having a slightly different view on things.
Speaker 2 (23:59):
When you get to eighty five and you think I've
only planned to live for a couple more years, you
might be going might might a few more years on that, actually, Kevin.
The other thing is as well, you've mentioned how problematic
it is or the challenges of owning property with managing
tenants and insurance and stuff like that. But there are
ways to mitigate that, because most advice I've heard on
this show is that if you are at first time landlord,
(24:21):
then you'd at least get a property manager to look
after that, and you'd have to budget that. But that's
one there's one major well that's right, and it.
Speaker 3 (24:27):
Could be that you you know, you might design to
buy a property for five hundred thousand dollars and put
two hundred thousand dollars into the share market. You know,
it also depends on what sort of income requirements you
need any investments right now. Because you said you're still working,
you may be continuing to save from what you're earning.
So you know, I would highly recommend that you go
and get some financial advice and just think it through
(24:48):
a little bit more deeply.
Speaker 2 (24:49):
Just while we've still got Kevin on the line there.
When it comes to getting some financial advice, of course,
it is easier said than done in a way, because
people who can pay for financial advice generally, I mean, sorry,
it can be quite an expensive thing, can't it. Or
you have to have a poor folly of a certain
size generally, don't you.
Speaker 3 (25:07):
Yeah, a look around. I mean there's a few people
around like who like I do. I mean I work
more on a sort of financial guidance basis, you know,
because I don't have anything to do with any products,
and I charge an HOLI rate basis. Right, I don't
do complix you know, advanced planes or anything along those lines.
There's a few people out there like me, some financial
investment advisor, because you wouldn't be want to be going
see the trouble with financial advisor, it's quite a broad term.
(25:28):
Could be an insurance advisor, it could be a mortgage advisor.
And so you really need to go and talk to
an investment advice. And some investment advisors do ourly rate
work as well.
Speaker 2 (25:37):
Right, what's a range of what people would pay for
sort of hourly financial advice.
Speaker 3 (25:41):
Yeah, we're probably talking three four hundred dollars. You know,
you can get a lot done in an hour or two, right.
Speaker 2 (25:46):
And I guess if you're talking about we're to six
seven hundred thousand dollars, a few hundred bucks to get
some advice which will help guide you, is probably not
the worst, not the worst expenditure.
Speaker 3 (25:57):
I would think it's fairly cheap, but.
Speaker 2 (25:58):
Cheaper than a bag from Gucci.
Speaker 3 (26:00):
Yeah, I'm not sure that they'd be buying a bag
from Gucci.
Speaker 8 (26:03):
You just saying no, I.
Speaker 2 (26:04):
Just jumped no.
Speaker 5 (26:05):
You know.
Speaker 2 (26:05):
The reason I thought of that bizarre tangent, tangential thought
was because I was watching the marathon in Paris, and
of course we've we've been in Paris not long ago,
and they ran past the Gucci store and I thought,
there's a shop I'm not going to be going into
in a hurry. And actually, what was the other one?
There was the who is is it? Louis We Tom?
Their store is? It was in the shape of a
(26:27):
Louis We Tom bag. Ah, right, okay, And I don't
know that's so I just sort of thought, not my
stores either. No, I'll check your handbag on the way out.
I don't know what I'm talking about.
Speaker 3 (26:39):
Now.
Speaker 2 (26:39):
I've just got to take a moment for a couple
of Tina lie down twenty three minutes to sixth though,
if you want to pick Lisa Dudson's brains on whether
it's too late for you or have you given up,
then maybe we can give you a bit of inspiration
to actually think, you know what, Let's get our heads
out of the sand. To use the title of Lisa's
one of Lisa's early book the first book, the second one.
There we go. Okay, I'll know to find out what
(27:00):
the first book was called in the moment, but we'll
be back in just to take twenty three minutes to
six News Talk said be welcome back to the Weekend Collective.
This is smart Money. My guest is Lisa Dudson. She's
a financial commentator, author and not a specific financial advisor
in terms of directing your particular investment, but she knows
(27:21):
a fair bit about this stuff. And so if you've
got any questions, give us a call on I eight
hundred eight ten eighty And as I say, no specific
financial advice. But the question we're exploring at the moment
is when is too late too late when it comes
to changing your financial outlook and investing in perhaps property
or your own house. I weight one hundred eighty ten
eighty right, let's carry on jan Hello.
Speaker 8 (27:44):
Oh hi, do at Lisa and Tim. I don't know
whether you know the answer to this, but if you're
a single person and you didn't get her partner who
tellson to in their own home and you do, what's
the term that you can live together?
Speaker 2 (28:07):
The fact.
Speaker 8 (28:09):
Before taken? If it breaks up, then they can claim
half for something.
Speaker 3 (28:14):
Of your Okay, So basically, if you've been together for
three years, three years more than three years three years
and more, then technically your partner has the ability to
access half of your assets unless you form a legal
agreement that says what yours is yours and what there
(28:36):
is theirs. So that's a really smart thing to be doing,
is getting some legal advice because I have. Yeah, it's
essentially a prenup.
Speaker 2 (28:45):
Yet, even if you're not getting married, if you if
if that person moves in with you, you need to
spell out the rules because you need to look after
your own interests just in case it doesn't work out.
Speaker 3 (28:54):
Yeah, and you'd be amazed how often I've heard stories
over my twenty five year career in this industry of
three years and one week, you know, one week past
the three years and someone says, oh, have half of that,
thank you, one moves out. Sleep you do it. You
just just look, it'll cost you a little bit of
money to go and you know, get the legal advice,
but it is super important.
Speaker 8 (29:13):
Yeah, definitely, pren up over rise the law.
Speaker 3 (29:18):
Well you kind of contract out of the law essentially.
So that's that's you know, that's essentially what people you
know talk about it. It's a form of a prenup really.
Speaker 2 (29:26):
It is actually quite a complex area of law jam.
But yes, you can contract out of it up to
a point. Because there are people who had very long relationships.
You're trying to rely on a twenty year old prenup,
and the courts will say, well, hold on a minute, Yeah,
you've built a life together. We're going to set some
of that aside. But yeah, definitely don't don't get caught
out by it sneaking up on you suddenly three years
(29:48):
and then half of what's his as yours and yours
as hers or whatever. Yeah yeah, yeah, okay, soy protect
your interests on that one. A few texts on the
is it too late? There is no hope as in
the fifties, banks wouldn't loan due to age. So even
though a work hard, it can't save buy a house.
Speaker 3 (30:07):
The slady we just spoke to you said that was
not she got a loan, right.
Speaker 2 (30:10):
It depends on your financial circumstances. You're looking at the
two million bucks with no deposit, then, no, that's right.
Speaker 3 (30:16):
Yeah, I mean I don't. I don't buy that at all.
I've seen people get you know, loans in their fifties,
so it's just really about your personal circumstances.
Speaker 2 (30:23):
Yeah, let's take another court where we're up to Andrew.
Speaker 6 (30:27):
Hi. Yeah, Hi, I've got some in laws that had,
you know, were very successful at certain periods of their life,
but their business sort of failed. And yeah, I actually
(30:48):
had to buy them out by their business there and
their house and everything else.
Speaker 2 (30:55):
Why did you have to buy them out?
Speaker 6 (30:58):
Well, my wife told.
Speaker 2 (31:01):
Me that I needed Okay, right, okay, okay, okay. The
way you put that, you just sort of, yeah, it
sounded a little less random than you just said.
Speaker 3 (31:10):
Right, So basically their business got into trouble and you
actually ended up buying their business.
Speaker 6 (31:16):
Not here in New Zealand, it's over in Spain. But
nonetheless they want to you know, they really want to
be self sufficient.
Speaker 2 (31:26):
And oh, you mean they want to get back up
on their feet again.
Speaker 6 (31:33):
I've sort of put them back up there. But they
feel oh no, obviously, you know, they feel a bit
sort of you know, I mean of proud people, right,
and they did have a very successful business. But I
mean they're in the late fifties. I mean, is it
(31:58):
possible for them to you know, well back in the well.
Speaker 3 (32:06):
I mean again, you know, you're saying that they're in Spain,
so I don't know what this you know, what the
environment is like in Spain, but you know, fifties, I
mean I'm in my fifties, still pretty young.
Speaker 2 (32:15):
I guess my question is yeah.
Speaker 6 (32:17):
Yeah, yeah, yeah, yeah, yeah, yeah yeah. Look, the environment
is very low interest rate. Well, they have a rolling
income from a small business that they have, and yeah,
it's just sort of like, well.
Speaker 3 (32:35):
You know, well, it seems to me that if they
you know, sounds like they're still got a bit of
a base. So if they're motivated and they're focused, it
doesn't seem to be any reason why they shouldn't be
able to because you know, late fifties are still very young.
Speaker 2 (32:49):
Also, Andrew I guess if you're in a position where
you can bail your in laws out in a business
in Spain, then you probably know a thing or two
about money anyway, don't you.
Speaker 6 (32:59):
No, I don't not at that age.
Speaker 2 (33:02):
What what age?
Speaker 6 (33:03):
Because well, I think once it gets to a point
in time, I mean, you know, you just taken this
simile mortgage at what twenty years?
Speaker 3 (33:13):
I mean, yeah, Well, look, I've got two friends of
mine in the early eighties who are still doing property deals, right,
so there's both super sharp and one's bought three properties
in the last couple of years now obviously there and
you know they've got quite a good financial base. And
then that particular person is not in New Zealand. But
I just think when there's a world is away.
Speaker 2 (33:35):
Okay, hey, thanks for you call, Andrew.
Speaker 7 (33:36):
It was.
Speaker 2 (33:37):
That's an interesting one, isn't it. Hi, Lisa, we had
property investor hobbyists, hobbyists. We came to you for advice,
confirmation on whether I could afford to retire at sixty one.
My wife has just reminded you said go for it
and you'll never run out. Well, you're correct. Now we're
seventy seven and living the good life. Always en George
your books and listening to you. That's from Donald.
Speaker 3 (33:58):
Oh that's very nice.
Speaker 2 (33:58):
I think worried where that text was going for a second.
We came here for advice and it's all to tears.
Speaker 3 (34:04):
I have not I did good.
Speaker 2 (34:06):
I did pre read that anyway. Another one here says
high term. Not many people talk about the cost of rates,
insurance and maintenance versus rent. And actually that is something
I was even chatting about because we're getting some stuff
changed to our place, and I said to one of
the builders. You know, I'm mates with my builder, but
(34:28):
one of the guys's working from we're just talking about
and I said, God, it's never going to end and
he said, no, it's not either, but of course he's
a builder recon But that is a reality of owning
a house is that you're always going to have things
you have to work on, I guess, unless it's brand
new and spiffing.
Speaker 3 (34:43):
And look, if you can get through your life and
rent and then build up your Keipi saver and an
investment portfolio so you've got plenty of money to be
able to afford to rent and have a lifestyle, then
you know, owning a home is not necessarily no, super important.
But the reality is that I've seen is that for
most people that they're just the compulsory savings nature of
(35:04):
a huart is actually super valuable because everyone says, oh, no,
you know, I won't buy a home, But I often
find those people get to later in life and they
don't have much to financially support themselves.
Speaker 2 (35:16):
Somebody else has written that said, b there are cheap
homes around, but people don't want to move to areas
in order to get a cheap home, for example, two
bedroom ninety nineties home in town and in Vicago two
ninety k in Auckland eight ninety k. Well that as
an argument also for considering whether you might want to
just buy an investment even if you don't want to
(35:37):
live in it.
Speaker 3 (35:37):
Yeah, yeah, absolutely, Yeah. So again it keeps coming back
to it's not necessarily just about the home. It's about
building some kind of investment portfolio that to provide you
with some income and some security when you get older.
Speaker 2 (35:51):
When you were looking at property in your property investing
days and choosing, did you did it take a while
for you to discipline yourself to choose a property based
on the numbers rather than whether it looked good in
the real estate magazine.
Speaker 3 (36:05):
Not really, probably because I've always had spreadsheets.
Speaker 2 (36:09):
So I was I saw you were a numbers.
Speaker 3 (36:11):
Yes, I was numbers, you know, like I just have
a little spreadsheet and you know, and there's the days
before trade me and I'd go round and I'd look
at the in the paper and you'd write and ring
that by age and get some numbers. And then I
deal with these numbers. And then i'd have a clipboard
and I'd drive around Auckland and on the weekend, and
then I just put off as them based on you know,
the numbers. It's totally about the numbers.
Speaker 2 (36:31):
Yeah. Well, I mean I guess so you haven't had
to battle that. But for people who want to look
at something, I think people make a mistake of thinking
how would I feel about living here, when in fact
maybe you've got to get away from the esthetic and
just think how does this stack up? Yeah?
Speaker 3 (36:46):
And I think the other thing that you find, you know,
talk to agents, and I took to my friends that
are investors and traders, and they say, oh, you know,
people don't want to buy you know, the shitty looking houses.
You know, they want them all done up. And renovated.
Speaker 5 (36:56):
Right.
Speaker 3 (36:56):
But the thing is is, if you do buy a
house that has got an overgrown lawn and you know
it does have the nineteen seventies or eighties wallpaper, it's amazing,
you know how much cheaper you can buy that house.
And if you put in a bit of grit over
a few years, you can do a lot of that
renovation work yourself. Maybe not your kitchens, in your bathrooms,
but certainly you're painting and you're tiling up the backyard
and you know some of those basic things.
Speaker 6 (37:17):
Right.
Speaker 3 (37:17):
It's a really great way to get ahead financially, but
there's a trade off.
Speaker 2 (37:20):
Yeah, that's probably why I do my own plastering, and
but I must have been I'm gritting my teeth about
the idea of doing a quite a complex job right now.
I'm like, oh gosh, but you know what's better than
paying someone else to do it? As long as it doesn't,
of course, all fall off.
Speaker 3 (37:34):
At least now you've got YouTube, right, so you can
look it off on YouTube and get some great scation.
Speaker 2 (37:38):
Some of those videos from different hardware companies as well.
There's some great stuff out there. Hi, Lisa, My wife,
two children are living in a family farmhouse rent free
and Ernie, well that's okay, oh, family farmhouse rent free
and earn one hundred and thirty k combined. We'd love
to build or buy our own home, but get stuck
when we hear from people like you that we should
(37:58):
buy investment properties. We've saved two fifty k, but can't
decide what to do next. I guess they'll any guidance
which might steer them up and make a mind up.
Speaker 3 (38:08):
I mean the way that I kind of look at
it as I just go, you know, you're let's say
you're thirty and by the time you want to get
to sixty, and you want to have X dollars, And
it doesn't necessarily matter what you buy in terms of investment,
whether it's home, investment, property shares. It's just whatever you
do you want to get to that pot of money.
And it may be that you change the type of structure,
(38:28):
all the type of things that you own around. Like
like I was saying before, you know, I bought my
own home and then I sold it, and then I
ended up buying range properties for a number of years,
and then I re organized things again and then sold
a couple and then brought a home, so you don't
have to make a decision today what you do for
the rest of your life. It's just about moving yourself
forward so you're always growing.
Speaker 2 (38:47):
In money and make a decision.
Speaker 3 (38:49):
Make a decision now.
Speaker 2 (38:50):
Yeah, yeah, okay, hopefully that helps you a little bit. Anyway,
we'll be back in just a moment. It's seven and
a half minutes. It's the six News Talks that'd be.
It's my producer tire is loving the fact that I've said, yes,
we can have themed music of you, like if we're
talking about money, find some money songs and of course
there we have Abba. Always time for a bit of
a But don't you think you Lisa, I'm going through
(39:12):
a bit obviously. I've listened to a bit of air
because my Instagram, the feed has just thrown me a
whole lot of Ebba stuff at the moment, scar that
ending what goes back to a crush I had on
Agnefiel when I was eight years old. I think something. Anyway, Hey, Lisa,
if people want to catch up with you Acumen dot
co dot nz.
Speaker 3 (39:29):
That's correct.
Speaker 2 (39:29):
Yep, thanks very much. That wraps up the show. Thanks
my producer, Tyra roberts A Sunday at six is next,
and if you want to catch any of the hours
you've missed them go to go to iHeartRadio and look
for the Weekend Collective podcast. Have a great evening, I'll
catch you again shortly.
Speaker 1 (39:50):
For more from the Weekend Collective, listen live to News
Talk zed B weekends from three pm, or follow the
podcast on iHeartRadio.
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