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Lisa Dudson: When is it too late to buy your first home? · The SME Stream

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Speaker 1: And welcome back to the Weekend Collective. This is Smart Money.
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Speaker 1: By the way, I'm Tim Beveridge. And if you've missed
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Speaker 1: any of the previous hours, you can go to look
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Speaker 1: for the week and Collective and you can catch up
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Speaker 1: with anything you've missed, or even on demand if you
0:15
Speaker 1: want to go into the news Stalk CIV website. From
0:18
Speaker 1: three to four we had Politics Central a couple of
0:19
Speaker 1: interesting interviews, one with Shane Jones about the way the
0:23
Speaker 1: gent tailors are treating pricing and whether they are adding
0:26
Speaker 1: as a cartel and gouging everyone when they can get
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Speaker 1: away with it, and we followed that up with an
0:31
Speaker 1: interview with Tama Portucker, who's the Associate Minister for Housing,
0:35
Speaker 1: about the number of people relying on emergency housing has
0:40
Speaker 1: dropped by thirty two percent in the last and six months,
0:43
Speaker 1: so and where we're going with that as well. So
0:45
Speaker 1: and also of course fascinating discussion with Greg McPherson just
0:50
Speaker 1: around you know, the science around getting older and avoiding
0:54
Speaker 1: it if we can. And my guest, I don't know
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Speaker 1: if she's interested in those sorts of things, but for
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Speaker 1: smart money, it is, Lisa, Are you do try and
1:01
Speaker 1: fight the signs of aging at all? They see just
1:03
Speaker 1: a spring chicken yourself.
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Speaker 2: Yeah, I don't know that. I'm not much of a
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Speaker 2: spring chicken, but you know, I think you certainly make
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Speaker 2: an effort, right because otherwise you see friends around you
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Speaker 2: and they're all falling apart, and you think, well, you've
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Speaker 2: worked really hard all your life to kind of have
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Speaker 2: a bit more freedom of choice when you get a
1:17
Speaker 2: little bit older, and it's kind of I don't thinking
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Speaker 2: to be ideal if your body's falling, falling apart around you.
1:23
Speaker 1: Do Do rich people live longer? I don't know if
1:25
Speaker 1: we know much about that, because if you're wealthy, you
1:28
Speaker 1: might tend to just indulge in too many glass of
1:30
Speaker 1: red fine French red wine.
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Speaker 2: Yeah, and most people to get wealthy have to work
1:34
Speaker 2: pretty hard, right, So that comes with some long oils
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Speaker 2: and some stress and often connecting your health. So that's
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Speaker 2: probably a bit of a mixed bag, I think.
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Speaker 1: Yeah, I'm a bit disappointed that I wasn't the Yaorkland
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Speaker 1: who won the forty four million, even though the odds
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Speaker 1: are so ridiculous. I'm lutto. But there's a part of
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Speaker 1: me that goes, why not me, damn it with someone else.
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Speaker 2: I'm sure there's lots of people have been saying that
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Speaker 2: same thing.
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Speaker 1: Yeah. Anyway, Look, the first topic we're going to have
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Speaker 1: a chat about is I'm trying to find a way
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Speaker 1: of phrasing it so it doesn't sound so desperate, because
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Speaker 1: it does. It's quite common overseas for people to rent
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Speaker 1: for their whole lives. But somebody raised it the other
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Speaker 1: day about is there a time when you are better
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Speaker 1: do I don't want to? It's maybe not the word
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Speaker 1: give up, when you are better to choose to rent
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Speaker 1: for your whole life rather than to aim to have
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Speaker 1: your own home. And there are people who actually do
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Speaker 1: that as a financial strategy anyway, because they put all
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Speaker 1: their all their attention into investing and making money elsewhere.
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Speaker 1: But it is, it is something that we're going to
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Speaker 1: see more of that people are going to be renting for,
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Speaker 1: you know, just resigning themselves that I've left it too late.
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Speaker 1: I'm going to have to you know, that's my lot?
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Speaker 1: Or do you think there's always hope?
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Speaker 2: I personally think there's always hope, and that's partly because
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Speaker 2: you know, I've been in financial services over twenty five
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Speaker 2: years now, and I've seen some extraordinary things happen when
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Speaker 2: people get focused, and so I just kind of feel
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Speaker 2: that you should never give up. And I think it's
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Speaker 2: tough that when you get to sort of sixty five
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Speaker 2: SEVENTI ish you don't have your own home. Like, it's
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Speaker 2: okay if you if you have invested really well and
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Speaker 2: you can afford to pay rent for the rest of
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Speaker 2: your life, but often with a lot of people, they haven't.
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Speaker 2: And you've got you know, two things that happens. One
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Speaker 2: is that you don't you haven't actually invested all your life,
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Speaker 2: so you don't have those funds. And the second thing
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Speaker 2: is is you have a bit of lack of security
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Speaker 2: around where you live. And you know that's okay and
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Speaker 2: you're you know when you're younger, but I think when
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Speaker 2: you're in you're sort of collecting the New Zealand super
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Speaker 2: Do you want to be in a situation where you
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Speaker 2: don't know whether the land was going to sell the house.
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Speaker 1: Also, it's incredibly disciplined too, if you are going to
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Speaker 1: rely on simply investing your money anywhere but in your
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Speaker 1: own property, because for many New Zealanders that's the one
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Speaker 1: sort of bit of enforced sort of capital gain that
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Speaker 1: you ever see as your own house or getting into.
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Speaker 2: It and even yeah, and I think capital gain through
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Speaker 2: you know, keeping pace with inflation and more than that.
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Speaker 2: But the key thing I like about getting into your
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Speaker 2: own home is the compulsory savings of it. Yeah, I
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Speaker 2: think it's quite different saying oh, I'm just going to
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Speaker 2: rent for life and put a save a bit of
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Speaker 2: money versus actually maybe buying a rental property and.
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Speaker 1: Then well, there's a halfway house on it, isn't there,
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Speaker 1: Because there are people who decide that going to rent
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Speaker 1: where they want to live and then they still invest
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Speaker 1: in property, and that would if you can I mean,
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Speaker 1: it feels it would feel like the wrong approach to
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Speaker 1: take that you're never going to have a stake in
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Speaker 1: property in some way. But I don't know if I'm
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Speaker 1: just being a bit sort of singular vision on that.
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Speaker 2: No, I don't think so, because again, you know, you
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Speaker 2: see too many people, I think, when they get to
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Speaker 2: that age of sixty five plus who don't have the
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Speaker 2: security of knowing they have a home for the rest
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Speaker 2: of their life and being able to afford to comfortably
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Speaker 2: live even if they decide to rent, to be able
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Speaker 2: to comfully rent for the rest of your life. So
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Speaker 2: I you know, I think it's always really important to
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Speaker 2: keepocused on buying a home in some shape or form
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Speaker 2: and never give up hope on it.
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Speaker 1: What are some of the sort of turn around stories
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Speaker 1: you've witnessed or.
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Speaker 2: Things like, you know, I had this lady come to
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Speaker 2: see me years ago, for instance, and she had come
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Speaker 2: from a tough background, like we're talking, you know, gangs,
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Speaker 2: you know, all sorts of things. She had two kids
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Speaker 2: to two different fathers. She was living with her grandmother
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Speaker 2: because you know, just the tragedy of the situation. She
5:24
Speaker 2: wasn't anyway, to cut a long story short, she came
5:26
Speaker 2: to see me, and this is probably going back a
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Speaker 2: dozen years or so ago now, and she had just
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Speaker 2: got really focused, had a couple of jobs, grandmother helped
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Speaker 2: out looking after the kids. She put hersself for a university.
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Speaker 2: And she came to see me and she had seventy
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Speaker 2: thousand dollars and she's saved enough to get into her home.
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Speaker 2: This is in wrote rual, like you know, to say,
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Speaker 2: twelve fifteen years ago. You know, now she was from
5:46
Speaker 2: you know, everything that could have been tough in someone's background.
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Speaker 2: You know, she tacked all the boxes and so, you know,
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Speaker 2: that was super impressive.
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Speaker 1: And so does she see you part way through the
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Speaker 1: process or did we.
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Speaker 2: Well, funny enough, she got one of my books and
5:58
Speaker 2: she bought it in to see me, and it was
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Speaker 2: all of dog egged and you know, and she'd kind
6:01
Speaker 2: of you know, she'd got someone had given that to her,
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Speaker 2: and she just picked it up on it. You know,
6:05
Speaker 2: sometimes it's just the right time, and she just read it,
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Speaker 2: and she read it and she read it, and it
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Speaker 2: just got her focused on she just kept saving towards
6:12
Speaker 2: that house deposit. So it was a do you know
6:14
Speaker 2: what book that was. Yeah, it's called get your Head
6:16
Speaker 2: out of the Sand, which is one of my first
6:19
Speaker 2: one active books, I right, which I really liked the
6:21
Speaker 2: title of it.
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Speaker 1: It's quite a good title actually, and sounds like it
6:27
Speaker 1: might have been the perfect title for her.
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Speaker 3: Yeah.
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Speaker 2: Sometimes it just, you know, when you want to know something,
6:30
Speaker 2: sometimes it's just the right moment, the right information appears right,
6:34
Speaker 2: you know, and so I've got you know, there's lots
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Speaker 2: of different stories like that that I've come across over
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Speaker 2: the years, and it's just deciding that you're going to
6:40
Speaker 2: do things differently because something's super important to you.
6:44
Speaker 1: How many books have you written about?
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Speaker 4: Eight?
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Speaker 2: Is eight?
6:47
Speaker 4: Yeah?
6:47
Speaker 2: Oh it's good memory.
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Speaker 1: Yeah, I just remember when you said you sort of
6:50
Speaker 1: said it with a sense of pride that embedded itself
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Speaker 1: in my brain. I thought, I mean, it's not just
6:55
Speaker 1: one or two books. What's on Martin Horse? Because he's
6:58
Speaker 1: written how many?
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Speaker 2: He's probably more than me. I love Martin. I think
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Speaker 2: he's great.
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Speaker 1: Yeah, but no, it's I can't remember how many has
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Speaker 1: but he's he's got quite a bit. Nice. But the
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Speaker 1: thing when you're writing a book on being smart about money,
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Speaker 1: how do you I mean, when you get to book
7:12
Speaker 1: number four or five, are you just what do you do?
7:14
Speaker 1: You just re repackaging ideas for the for the environment
7:19
Speaker 1: or do you come up with the new ideas? And
7:20
Speaker 1: I hadn't thought about that. Actually, I'm just going to
7:22
Speaker 1: stick that in a your book.
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Speaker 2: Oh, probably a bit of both, you know. Me and
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Speaker 2: I've written half on property and half on sort of
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Speaker 2: personal finance. So you know, someon have got case studies,
7:30
Speaker 2: some haven't got case studies. Case studies are obviously different.
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Speaker 1: What's your best book?
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Speaker 2: Funny enough that you get your head out of the sand.
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Speaker 2: I really liked that. I had to really fight with
7:39
Speaker 2: the publisher over the name of it, and I sort
7:41
Speaker 2: of put my foot down away worse. Yeah, they wanted
7:45
Speaker 2: to call it like sort your Money at first or so,
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Speaker 2: I don't know whatever it was anyway, but.
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Speaker 1: Yours has got a bit it's a bit well, it's
7:52
Speaker 1: more catchy as opposed to sorting your money worries.
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Speaker 2: Well, that's right, and I kind of wanted to take
7:56
Speaker 2: the heaviness out of managing the money and these lots
7:59
Speaker 2: of things you can fill out. And interestingly, back then,
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Speaker 2: I did I don't know, like one hundred radio shows
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Speaker 2: around that book. I did tons and tons of radio
8:06
Speaker 2: and almost every radio announcers said I'm up to page
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Speaker 2: fifty five and I filled out all this stuff, and
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Speaker 2: so that was kind of cool about it.
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Speaker 1: Yeah, I like that book, So you do. That's we're
8:16
Speaker 1: going to go with, Get your hit out. How many
8:18
Speaker 1: years ago was that?
8:18
Speaker 2: Gosh, now to see I'm no Spring Chicken.
8:23
Speaker 1: I had it over you are Spring Chicken when you
8:25
Speaker 1: wrote it, Ah, probably.
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Speaker 2: Much closer than I was now, maybe seventeen years ago
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Speaker 2: or something like that.
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Speaker 1: Wow. Yeah, good, Yeah, Okay, So look we want to
8:33
Speaker 1: hear from you because there are a lot of people
8:35
Speaker 1: who I am more often at talking to people who
8:39
Speaker 1: who sort of say, look, I think I've just about
8:42
Speaker 1: given up on the idea of owning my own house,
8:44
Speaker 1: and yeah, I think, yeah, it does feel a bit
8:49
Speaker 1: grim for when people say that. If you're one of
8:50
Speaker 1: those people, if feel your optimism on how on property
8:54
Speaker 1: ownership is waning, we'd love to hear from you because
8:57
Speaker 1: Lisa might have some suggestions and it won't include the
8:59
Speaker 1: expert and get your head out of the sound, but
9:01
Speaker 1: it might be you know, maybe it's not too late.
9:03
Speaker 1: I wait, hundred eighty ten eighty. I mean there probably
9:07
Speaker 1: is a time when it is you push the envelope,
9:10
Speaker 1: isn't it. For instance, if you're sixty five and you're
9:12
Speaker 1: about to retire and you haven't bought a house, yeah,
9:15
Speaker 1: I mean that's problematic.
9:16
Speaker 2: Yeah, and it's problematic if you haven't got any savings either,
9:19
Speaker 2: you know. So, I mean, I kin'd I just sort
9:21
Speaker 2: of feel that you should just focus on putting some
9:23
Speaker 2: money together. So whether it's saving for a house deposit,
9:26
Speaker 2: or you you save enough a house to positing, you say, well,
9:28
Speaker 2: I don't want to buy a home, I'll buy an
9:30
Speaker 2: investment property. Or then you go, oh, maybe I don't
9:31
Speaker 2: want to do that either. I'll put them to the
9:33
Speaker 2: share market and you'll keep saving. And then I guess
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Speaker 2: that's okay too. But I think it's you want to
9:38
Speaker 2: get to that point in life where you when you're
9:40
Speaker 2: around retirement, then ideally you can afford to live in
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Speaker 2: your own home, because again it's that security of tenure
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Speaker 2: and not worrying him to worry about the landlord.
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Speaker 1: Okay, I wait one hundred eighty ten eighty text nine
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Speaker 1: two nine two. Is there a time where you think
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Speaker 1: it's better to give up in the dream of owning
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Speaker 1: your own home? And what it is?
10:00
Speaker 2: It?
10:00
Speaker 1: Ever an equation where you could look at that and
10:03
Speaker 1: it would be cheap at a rental, or no, is
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Speaker 1: it always better?
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Speaker 2: It can be cheap at rent. I rented for a
10:09
Speaker 2: long time. But what I did is I built my
10:11
Speaker 2: property portfolio because I decided where I wanted to live
10:14
Speaker 2: didn't make sense for me to buy or to own,
10:16
Speaker 2: so I just rented long term and then just built
10:19
Speaker 2: up my portfolio. And then I got to the point
10:20
Speaker 2: where I sold a couple of rentals and bought my
10:22
Speaker 2: own home. So you know, I think it's just having
10:24
Speaker 2: a bit of a strategy rather than you know, as
10:27
Speaker 2: they putting your head in the sand and thinks all
10:28
Speaker 2: too hard and you know you've got to have some
10:31
Speaker 2: you know. Really it's about thinking about the longer term.
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Speaker 1: I guess the thing for people would be if you
10:36
Speaker 1: get to this particular point when you've got such a
10:38
Speaker 1: massive loan, because for instance, the Auckland property market is well,
10:42
Speaker 1: it depends on the choices you're making as well, because
10:44
Speaker 1: if you want to go for the neighbor if you
10:46
Speaker 1: want to buy in the neighborhood where you've been renting,
10:48
Speaker 1: you might be in for a shock. But you do
10:49
Speaker 1: have to sort of sometimes change your goals.
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Speaker 2: Yeah, and even if you get to retirement and you
10:54
Speaker 2: still have a big mortgage, and let's say that you
10:56
Speaker 2: do own in one of the major centers, you might say, okay,
10:58
Speaker 2: well what I'm going to do is I'm going to
11:00
Speaker 2: you know, move out of Aukland, downsize, buy something for
11:03
Speaker 2: half the amount of money and you might have little
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Speaker 2: no mortgage.
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Speaker 1: Okay, So we want to hear from you. Have you
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Speaker 1: actually are you one of those people who've made a
11:10
Speaker 1: decision that you might just rent, or you might have
11:13
Speaker 1: to rent for the for the rest of your life
11:15
Speaker 1: because you're pessimistic about the idea of buying what you want,
11:18
Speaker 1: or are you someone who's decided, actually, you know what,
11:20
Speaker 1: I don't mind renting. Of course, I'm going to buy
11:22
Speaker 1: somewhere in a market where I can afford it and
11:24
Speaker 1: start to building my property portfolio that way. Give us
11:27
Speaker 1: a call on eight hundred eighty ten eighty if you've
11:29
Speaker 1: got any questions about getting started, because I think a
11:32
Speaker 1: lot of the time the thing that stops people doing
11:35
Speaker 1: this because they think it's too late, and that's probably
11:37
Speaker 1: a major sort of block in terms of people getting
11:41
Speaker 1: your heir, doesn't it.
11:41
Speaker 2: Yeah, well, that's right, because you could also put quite
11:43
Speaker 2: a bit of money and put maybe ten percent of
11:45
Speaker 2: what you need to keep you saving too. If you
11:46
Speaker 2: did that for long enough, then you'd be in quite
11:48
Speaker 2: a good position by the time you retire. If you
11:50
Speaker 2: started young enough and you did enough of it, you'd
11:52
Speaker 2: been in quite a good financial position by the time
11:54
Speaker 2: you retired. So it's just.
11:55
Speaker 1: Something Yeah, well, I guess the question is to be
11:57
Speaker 1: people who are listening going, well, I haven't done it.
11:59
Speaker 1: From a young age, and or people have done it
12:01
Speaker 1: from a young age and they used it to maybe
12:03
Speaker 1: get into their first property, so at least they've started
12:05
Speaker 1: in that respect. But it's never too late to do something,
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Speaker 1: is it?
12:10
Speaker 2: And I guess that's my point, right, it's just doing something,
12:13
Speaker 2: and it's just making a choice and going you're right,
12:16
Speaker 2: I'm gonna, you know, just not spend so much money
12:19
Speaker 2: on whatever it is, and you just put a bit
12:21
Speaker 2: of money asign And I think also too, we underestimate
12:23
Speaker 2: the power of compounding interest over time, So how your
12:27
Speaker 2: money compounds and grows over time because you think it's
12:30
Speaker 2: not a lot. You know that you're only saving one
12:33
Speaker 2: hundred dollars a month or whatever, but you'd be surprised
12:35
Speaker 2: what it grows to over time.
12:37
Speaker 1: Okay, have you left it too late or do you
12:39
Speaker 1: think you have? And you want a bit of advice
12:41
Speaker 1: or to share your experience with us, then give us
12:44
Speaker 1: a call. My guess is Lisa Dudson. She's a financial advisor.
12:48
Speaker 1: I think we still officially call you a financial advisor.
12:51
Speaker 2: That's a reason why can't just I'm just not a
12:53
Speaker 2: regulated financial advisors. I don't sell any products.
12:56
Speaker 1: Yeah, but we won't be giving specific financial advice, because
12:59
Speaker 1: that's just the white roles general sort of whether radio show.
13:02
Speaker 1: But if you've got any questions and you want to
13:03
Speaker 1: get a little bit of guidance, we'd love to hear
13:05
Speaker 1: from your at eight hundred eighty ten eighty or to
13:07
Speaker 1: share your story on whether it was too late and
13:09
Speaker 1: you've given it a crack and you know what, turns
13:10
Speaker 1: out it wasn't too late eight hundred eighty ten eighty
13:13
Speaker 1: Text nine two ninety two. This is the weekend Collective
13:16
Speaker 1: of Smart Money. I'm Tim Beverage, my guest is Lisa Dudson.
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Speaker 1: welcome back to that we can collect to smart Money.
14:23
Speaker 1: My guest is Lisa Dudson, author of many books, including
14:26
Speaker 1: Just for Fun that title get your Head out of
14:28
Speaker 1: the Sand. We've got a few callers lined up which
14:31
Speaker 1: we'll get onto in just a month because we're talking
14:33
Speaker 1: about when is it too late to give up on
14:35
Speaker 1: the dream of home ownership? And I still want to
14:37
Speaker 1: find a better way of summing up that topic because
14:39
Speaker 1: it just sounds so bloody sad. But anyway, when is
14:43
Speaker 1: it time to adjust your priorities on home ownership? There's
14:46
Speaker 1: a nice sort of touchy feely way. I mean, it
14:49
Speaker 1: does sound corporate speak, doesn't it anything? I'll stick it in.
14:52
Speaker 1: I'll stick it in to chat GPT in the break
14:54
Speaker 1: and say how do I phrase this question? See what
14:56
Speaker 1: it comes up with. Anyway, let's take some calls.
15:00
Speaker 3: Hello, Hey, after moony everybody, how are you good?
15:04
Speaker 1: Thanks?
15:06
Speaker 3: So I'm in a bit of a fortunate position. I've
15:08
Speaker 3: recently just moved back from Australia and we had a
15:10
Speaker 3: couple of rinkal property rather there it was sold. So
15:13
Speaker 3: it's set me up in said, I've been through a breakup.
15:17
Speaker 3: I own my own home now and to wrong it
15:21
Speaker 3: mortgage three. But what I'm trying to sort of work
15:23
Speaker 3: out is is it better off to try and build
15:27
Speaker 3: a property portfolio moving forward in my life or is
15:31
Speaker 3: it better to invest in stocks with money or leave
15:36
Speaker 3: it in a high interest account.
15:38
Speaker 1: Share market or property.
15:39
Speaker 2: Yeah, I mean I probably wouldn't go the high interest
15:43
Speaker 2: account because obviously that's probably going to be coming down
15:46
Speaker 2: a wee it. I think you unless you're getting pretty
15:48
Speaker 2: close to retirement and you can't cope with any risk.
15:51
Speaker 2: I think the smarter ways of dealing with it, and
15:52
Speaker 2: so really, you know, property versus shares. The great thing
15:55
Speaker 2: I love about property investment is the leverage factor. But
15:58
Speaker 2: with leverage comes small risk. The great thing about the
16:01
Speaker 2: shear market is diversification and liquidity, and you know, generally
16:05
Speaker 2: what I'm finding with a lot of my clients, I'm
16:07
Speaker 2: suggesting that they consider maybe both, maybe not both right now,
16:12
Speaker 2: but you know, both in the portfolio because then you've
16:14
Speaker 2: got leverage, you've got a bit of risk either, you've
16:16
Speaker 2: got some divesification, you've got liquidity, you've got you've kind
16:19
Speaker 2: of got all your bases covered. But a lot of
16:20
Speaker 2: it also depends on age and stage of life, brisk profile,
16:25
Speaker 2: how much you've you know, you've got to invest in
16:27
Speaker 2: terms of a lump some more a regular income. So
16:29
Speaker 2: there's quite a lot of things to be going through
16:31
Speaker 2: with it, you know, and and of course I think
16:32
Speaker 2: you know, absolutely get some good advice.
16:35
Speaker 3: Yeah, so it's probably been to speak to it as
16:38
Speaker 3: you and vis it and actually get a decent.
16:43
Speaker 5: Yeah.
16:44
Speaker 2: Absolutely.
16:44
Speaker 1: I'm impressed Michael, because you've mentioned you've been through a
16:47
Speaker 1: related I think you been through a breakup, but you've
16:49
Speaker 1: got your own house all goods free, And I was thinking, well, that's,
16:52
Speaker 1: of course, that's one way to do a lot of
16:54
Speaker 1: your own wealth is to split up in a relationship
16:57
Speaker 1: isn't It.
16:58
Speaker 3: Can be very costly, so it wasn't but handy.
17:01
Speaker 1: Yeah, well anyway, I got on you. Thanks, thanks for
17:05
Speaker 1: your call. Yeah. I mean that's the perennial decision for
17:09
Speaker 1: any investor, isn't it if you have a bit of
17:10
Speaker 1: money or you want to make some property or shares.
17:12
Speaker 1: And look, I guess if you'd bought Berkshire Hathaway back
17:16
Speaker 1: when they were starting out, you'd be going shares all
17:18
Speaker 1: the way.
17:19
Speaker 2: Yeah, yeah, well that's right. And also to again, you know,
17:21
Speaker 2: you can do both. It just comes down to what
17:23
Speaker 2: you've got to work with, time frames, risk profiles. Some
17:27
Speaker 2: of my people that I've worked over the years absolutely
17:29
Speaker 2: love property, would never go through the share market, and
17:32
Speaker 2: some will won't go near property, and some do a
17:35
Speaker 2: bit of both. So sometimes it comes down to your
17:37
Speaker 2: personal preference as well. I think both can do well
17:39
Speaker 2: for different reasons.
17:40
Speaker 1: Yeah, and the once bitten twice shy possibly with people
17:43
Speaker 1: who've had their well. Actually, there would have been plenty
17:46
Speaker 1: of people who got burned in property if they went
17:48
Speaker 1: mortgage themselves to their health in the last few Oh.
17:51
Speaker 2: Absolutely, you bought it in a couple of years ago
17:53
Speaker 2: and you have had high interest rates and the markets
17:55
Speaker 2: come down, you'd be hating life, right.
17:57
Speaker 1: Yeah, right, let's take some more calls.
17:59
Speaker 3: Kate, Hello, Hello, how are you?
18:02
Speaker 5: Lisa?
18:03
Speaker 4: And Tim? Good?
18:03
Speaker 2: Thank you?
18:04
Speaker 1: Good things? Yeah, where you go?
18:06
Speaker 4: I loved the title of your book, Lisa, thank you,
18:11
Speaker 4: because I'm going to affirm that myself. At fifty four,
18:15
Speaker 4: I had about less than twenty thousand dollars in the
18:17
Speaker 4: bank and thought, dear God, if I'm going to end
18:20
Speaker 4: up a bag lady if I don't do something. So
18:24
Speaker 4: I was in Australia at the time. I decided that
18:27
Speaker 4: I'd go to the Northern Territory, find it, find some.
18:31
Speaker 3: Sort of job.
18:33
Speaker 4: Seven years later I came back to New Zealand, I
18:37
Speaker 4: bought my first house and seven years later I'm mortgage free.
18:43
Speaker 2: Oh well done me. That's a pretty impressive story.
18:48
Speaker 1: Okay, how you.
18:50
Speaker 4: Don't have to be too old or too late to
18:53
Speaker 4: do something like that?
18:55
Speaker 1: Can I ask, roughly what age you were when you
18:57
Speaker 1: disappeared a little than territory and what you did there
18:59
Speaker 1: before you that got you to come back and buy
19:02
Speaker 1: get into it?
19:03
Speaker 5: Sixty four?
19:04
Speaker 4: When I went over, I did subcontract work administration for
19:09
Speaker 4: one of the subcontractors put my head down, worked for
19:13
Speaker 4: seven years, came back to New Zealand and twenty fifteen,
19:19
Speaker 4: bought a house in twenty sixteen and became a mutgatrey
19:25
Speaker 4: last year.
19:26
Speaker 1: I'm assuming you must have been earning a reasonable income.
19:29
Speaker 4: Or it was a reasonal income. It wasn't huge because
19:34
Speaker 4: I wasn't working directly with you know, like BP or
19:39
Speaker 4: Rio Tinto.
19:41
Speaker 1: Are you working in the mining sector?
19:43
Speaker 4: Whaar, Yeah exactly.
19:45
Speaker 2: And I guess there's a bit of sacrifice there because
19:48
Speaker 2: you know, the little on territories may not necessarily be
19:50
Speaker 2: number one place that you want to live, but you
19:52
Speaker 2: go there maybe to get ahead financially. And I'm sure
19:55
Speaker 2: you were pretty careful about every dollar that you spent
19:58
Speaker 2: to make sure that you spent it's, you know, really
20:00
Speaker 2: wisely and put as much as you could into you
20:02
Speaker 2: know that saving for that deposit and then paying that
20:04
Speaker 2: mortgage down.
20:06
Speaker 4: Very much so. And that's what I did, is I mean,
20:08
Speaker 4: I realized, as I said, it's sixty four, I've got
20:12
Speaker 4: to do something. I've got to change something.
20:14
Speaker 1: Yeah, did you how did you find those seven years
20:16
Speaker 1: in the Northern Territory?
20:18
Speaker 4: I loved it, absolutely loved.
20:22
Speaker 1: Was that because you were the work was good.
20:24
Speaker 3: But yep, it was great.
20:27
Speaker 4: You know, my sisters, I was settling, I was in
20:30
Speaker 4: my forties.
20:31
Speaker 1: Fantastic. Good on you. And that's a big, bold decision
20:34
Speaker 1: to do something quite radical, but there we go.
20:35
Speaker 2: Yeah, but that's my point, right, It's about, you know,
20:38
Speaker 2: if you make something important enough and you get super
20:40
Speaker 2: focused on it, it's absolutely amazing what you can actually
20:43
Speaker 2: achieve when you you know, when you decide that you
20:46
Speaker 2: really want to, you know, do something so well done.
20:48
Speaker 1: Yeah, good on you, Kate, thanks for your call. Really
20:50
Speaker 1: appreciate it. Call it again, Kevin Goda, good how I
20:55
Speaker 1: am good things.
20:56
Speaker 6: I just like, at least its opinion on something. I'm
21:00
Speaker 6: pretty much in the perfect position that you've been describing.
21:04
Speaker 6: I'm sixty seven, so obviously I'm super into a new
21:08
Speaker 6: it eurnt. But I'm still working because I like working,
21:11
Speaker 6: and I'm in the position of whether I continue to
21:15
Speaker 6: rent or whether I buy. I've been a homeowner probably
21:20
Speaker 6: for the last forty five years, but circumstances conspired. But
21:26
Speaker 6: now I'm in the position where I've got yesh and
21:32
Speaker 6: that's on term deposit and I'm renting, and my options
21:36
Speaker 6: are to use that seven hundred k to buy my
21:40
Speaker 6: own place, and the pros and cons. I mean, if
21:46
Speaker 6: I buy a property for seven hundred K and stay
21:50
Speaker 6: renting and rent that out, rent my property out for
21:54
Speaker 6: five hundred dollars a week, that's less than four percent
21:57
Speaker 6: return on my money. Whereas I leave that seven hundred
22:01
Speaker 6: k in the bank, I'm getting five percent per turing
22:03
Speaker 6: on my money with no hassle. Five buy property and
22:08
Speaker 6: rented out. I've got issues with tenants, I've got issues
22:12
Speaker 6: with rates, I've got an institutiones with insurance, peers and mainenance. Yeah,
22:17
Speaker 6: there's renting.
22:18
Speaker 2: Yeah, but you've got a couple of things to think
22:19
Speaker 2: about there. So one is that you might be getting
22:22
Speaker 2: five percent on a team deposit at the moment, but
22:24
Speaker 2: I would be stunned if in twelve months time that
22:26
Speaker 2: you're getting five percent and you might be getting three
22:29
Speaker 2: or four percent, right, So that's that's the first thing.
22:32
Speaker 2: Because you know money and cash and turned deposits often
22:35
Speaker 2: you know, keeps both paced with inflation. Just you might
22:40
Speaker 2: have when you're talking about four percent return on having
22:43
Speaker 2: a rented property, that that's potentially what you're talking about
22:45
Speaker 2: is like your gross yield or your cash return before tak.
22:49
Speaker 6: No, that's just out with seven hundred thousand. I was
22:51
Speaker 6: getting five hundred a week.
22:52
Speaker 2: Yeah, but yeahs me three.
22:54
Speaker 6: Point seven percent or something. That's before repairs and maintenance rates,
23:00
Speaker 6: insurance all that sort of.
23:01
Speaker 2: Yeah, of course, but remember that that house, that seven
23:05
Speaker 2: hundred thousand dollars house grows in value over the years.
23:09
Speaker 1: That's my stage.
23:10
Speaker 6: Yeah, yet at Lisa, I understand that, but it does
23:14
Speaker 6: grow and value. But when you're sixty seven years old
23:18
Speaker 6: and you're looking down the barrel at eighty years old,
23:20
Speaker 6: I don't care about capital growth. I mean, it's not
23:24
Speaker 6: as if I'm going to buy buy a place, let
23:27
Speaker 6: it increase for two hundred thousand and go buy a farm.
23:30
Speaker 6: I don't really care about capital growth. It just just
23:32
Speaker 6: at that stage in life.
23:33
Speaker 2: Yeah, I understand, but just you be mindful too though,
23:37
Speaker 2: you know we often say that, But then you know
23:38
Speaker 2: there's a lot of people that live to their nineties
23:40
Speaker 2: and well past that, right, so you know you still
23:43
Speaker 2: could have a good another thirty plus years here, and
23:46
Speaker 2: then you might be having a slightly different view on things.
23:49
Speaker 1: When you get to eighty five and you think I've
23:50
Speaker 1: only planned to live for a couple more years you
23:52
Speaker 1: might be going might might a few more years on that, actually, Kevin.
23:54
Speaker 1: The other thing is as well, you mentioned how problematic
23:57
Speaker 1: it is or the challenges of owning property with them
24:00
Speaker 1: managing tenants and insurance and stuff like that. But there
24:03
Speaker 1: are ways to mitigate that, because most advice I've heard
24:07
Speaker 1: on this show is that if you are a first
24:10
Speaker 1: time landlord, then you'd at least get a property manager
24:12
Speaker 1: to look after that, and you'd have to budget that.
24:14
Speaker 1: But that's one there's one major well that's right, and.
24:17
Speaker 2: It could be that you you know, you might design
24:19
Speaker 2: to buy a property for five hundred thousand dollars and
24:21
Speaker 2: put two hundred thousand dollars into the share market. You know,
24:24
Speaker 2: it also depends on what sort of income requirements you
24:27
Speaker 2: need any investments right now, Because you said you're still working,
24:29
Speaker 2: you may be continuing to save from what you're earning.
24:33
Speaker 2: So you know, I would highly recommend that you go
24:35
Speaker 2: and get some financial advice and just think it through
24:38
Speaker 2: a little bit more deeply, just.
24:39
Speaker 1: While we've still got Kevin on the line there. When
24:42
Speaker 1: it comes to getting some financial advice, of course, it
24:46
Speaker 1: is easier said than done in a way because people
24:48
Speaker 1: who can pay for financial advice generally, I mean, sorry,
24:52
Speaker 1: it can be quite an expensive thing, can't it. Or
24:54
Speaker 1: you have to have a portfolio of a certain size generally,
24:56
Speaker 1: don't you.
24:57
Speaker 2: Yeah? Does it look around? I mean there's a few
24:59
Speaker 2: people around like who like I do. I mean I
25:01
Speaker 2: work more on a sort of financial guidance baces, you know,
25:03
Speaker 2: because I don't have anything to with any products, and
25:05
Speaker 2: I charge an ALI rate basis. Right, I don't do
25:07
Speaker 2: complix you know, advanced planes or anything along those lines.
25:11
Speaker 2: There's a few people out there like me, some financial
25:13
Speaker 2: investment advisor, because you wouldn't want to be going see
25:16
Speaker 2: the trouble with financial advisor. It's quite a broad term.
25:18
Speaker 2: Could be an insurance advisor, it could be a mortgage advisor.
25:22
Speaker 2: And so you really need to go and talk to
25:24
Speaker 2: an investment advice. And some investment advisors do ALI rate
25:27
Speaker 2: work as well.
25:27
Speaker 1: Right, what's a range of what people who pay for
25:30
Speaker 1: sort of hourly financial advice.
25:31
Speaker 2: Yeah, we're probably talking three four hundred dollars. You know,
25:33
Speaker 2: you can get a lot done in an hour or two, right.
25:36
Speaker 1: And I guess if you're talking about weird to six
25:38
Speaker 1: seven hundred thousand dollars a few hundred bucks to get
25:42
Speaker 1: some advice which will help guide you. Is probably not
25:44
Speaker 1: the worst, not the worst expenditure.
25:46
Speaker 2: I would think it's fairly cheap, but cheaper than a
25:49
Speaker 2: bag from Gucci. Yeah, I'm not sure that they'd be
25:52
Speaker 2: buying a bag from Gucci, just saying.
25:53
Speaker 1: No, I'm just I'm actually no.
25:55
Speaker 2: You know.
25:55
Speaker 1: The reason I thought of that bizarre tangential thought was
25:59
Speaker 1: because I was watching the marathon in Paris, and of
26:02
Speaker 1: course we've we've been in Paris not long ago, and
26:05
Speaker 1: they ran past the Gucci store, and I thought, there's
26:08
Speaker 1: a shop I'm not going to be going into in
26:09
Speaker 1: a hurry. And actually, what was the other one?
26:11
Speaker 6: There?
26:11
Speaker 1: Was the who is is it? Louis we Tom? Their
26:15
Speaker 1: store is? It was in the shape of a Louis
26:18
Speaker 1: we Tom bag? All right, okay, And I don't know
26:20
Speaker 1: that's so I just sort of thought, not my stores either. No,
26:24
Speaker 1: I'll check your handbag on the way out. I don't
26:28
Speaker 1: know what I'm talking about now. I've just got to
26:29
Speaker 1: take a moment for a cup of Tina Lie doown
26:31
Speaker 1: twenty three minutes to six though, if you want to
26:33
Speaker 1: pick Lisa Dudson's brains on whether it's too late for
26:36
Speaker 1: you or have you given up, then maybe we can
26:38
Speaker 1: give you a bit of inspiration to actually think, you
26:41
Speaker 1: know what, Let's get our heads out of the sand.
26:43
Speaker 1: To use the title of Lisa's one of Lisa's early book,
26:46
Speaker 1: the first book, the second one.
26:48
Speaker 2: There we go.
26:48
Speaker 1: Okay, I'll know to find out what the first book
26:50
Speaker 1: was called in the moment, but we'll be back in
26:52
Speaker 1: just to take twenty three minutes to six news talks.
26:54
Speaker 1: He'd be welcome back to the Weekend collective. This is
27:01
Speaker 1: smart Money. My guest is Lisa Dudson. She's a financial
27:05
Speaker 1: commentator or author, and not a specific financial advisor in
27:09
Speaker 1: terms of directing your particular investment, but she knows a
27:11
Speaker 1: fair bit about this stuff. And so if you've got
27:13
Speaker 1: any questions, give us a call on eight hundred eight
27:16
Speaker 1: ten eighty. And as I say, no specific financial advice.
27:18
Speaker 1: But the question we're exploring at the moment is when
27:21
Speaker 1: is too late too late when it comes to changing
27:24
Speaker 1: your financial outlook and investing in perhaps property or your
27:28
Speaker 1: own house. I eight one hundred eighty ten eighty right,
27:31
Speaker 1: let's carry on, jan Hello.
27:34
Speaker 7: Oh hi, do at Leasta and Tim? I don't know
27:38
Speaker 7: whether you know the answer to this. But if you're
27:41
Speaker 7: a single person and you didn't get her partner who
27:48
Speaker 7: toutson to in their own home and you do, what's
27:54
Speaker 7: the term that you can live together the facto? Yeah
27:59
Speaker 7: before they if it breaks up, then they can claim
28:03
Speaker 7: hurt for something of your role.
28:06
Speaker 2: Okay. So basically, if you've been together for three years,
28:10
Speaker 2: three years, more than three years three years and more
28:12
Speaker 2: than technically your partner has the ability to access half
28:19
Speaker 2: of your assets unless you form a legal agreement that
28:24
Speaker 2: says what yours is yours and what is theirs. So
28:27
Speaker 2: that's a really smart thing to be doing, is getting
28:30
Speaker 2: some legal advice because I have Yeah, it's essentially a prenup.
28:35
Speaker 1: Yet, even if you're not getting married, if you if
28:36
Speaker 1: you if that person moves in with you, you need to
28:39
Speaker 1: spell out the rules because you need to look after
28:42
Speaker 1: your own interests just in case it doesn't work out.
28:44
Speaker 2: Yeah, And you'd be amazed how often I've heard stories
28:47
Speaker 2: over my twenty five year career in this industry of
28:50
Speaker 2: three years and one week, you know, one week past
28:52
Speaker 2: the three years and someone says, oh, oh have half
28:54
Speaker 2: of that, thank you? One moves out, So you do it.
28:57
Speaker 2: You just just look, it'll cost you a little bit
28:59
Speaker 2: of money to go and you know, get the legal advice,
29:02
Speaker 2: but it is super important.
29:03
Speaker 7: Yeah, definitely pre up over rise the law.
29:08
Speaker 2: Well, you kind of contract out of the law essentially,
29:11
Speaker 2: So that's that's you know, that's essentially what people you
29:14
Speaker 2: know talk about it. It's a form of a prenup.
29:16
Speaker 1: Really, it is actually quite a complex area of law. Jam.
29:19
Speaker 1: But yes, you can contract out of it up to
29:20
Speaker 1: a point. Because there are people who had very long relationships.
29:24
Speaker 1: You're trying to rely on a twenty year old pren
29:26
Speaker 1: up and the courts will say, well, hold on a minute, Yeah,
29:28
Speaker 1: you've built a life together. We're going to set some
29:31
Speaker 1: of that aside. But yeah, definitely don't don't get caught
29:35
Speaker 1: out by it sneaking up on you suddenly three years
29:38
Speaker 1: and then half of what's his as yours and yours
29:41
Speaker 1: as hers or whatever. Yeah yeah, yeah, okay, so ye
29:45
Speaker 1: protect your interests on that one. A few texts on
29:48
Speaker 1: the is it too late? There is no hope As
29:51
Speaker 1: in the fifties banks wouldn't loan due to age. So
29:53
Speaker 1: even though a work hard can't save to buy a house.
29:56
Speaker 2: Um, the slatedly. We just spoke to you said that
29:58
Speaker 2: was not she got alone.
30:00
Speaker 1: Right, It depends on your financial circumstances. You look at
30:03
Speaker 1: two million bucks with no deposit, then no, that's right.
30:05
Speaker 2: Yeah, I mean I don't. I don't buy that at all.
30:07
Speaker 2: I've seen people get you know, loans in their fifties.
30:10
Speaker 2: So it's just really about your personal circumstances.
30:13
Speaker 1: Yeah, let's take another court where we're up to Andrew. Hi.
30:18
Speaker 5: Yeah, Hi, I've got some in laws that had, you know,
30:26
Speaker 5: was very successful at certain periods of their life, but
30:31
Speaker 5: their business sort of failed. And yeah, I actually had
30:38
Speaker 5: to buy them out by their business there and their
30:42
Speaker 5: house and everything else.
30:45
Speaker 1: Why did you have to buy them out?
30:48
Speaker 5: Well, my wife told.
30:50
Speaker 1: Me that I needed Okay, right, okay, okay, okay. The
30:56
Speaker 1: way you put that, you just sort of, yeah, it
30:58
Speaker 1: sounded a little less random then you just said right.
31:00
Speaker 2: So basically their business got into trouble and you actually
31:04
Speaker 2: ended up buying their business.
31:06
Speaker 5: Not here in New Zealand, it's over in Spain. But nonetheless,
31:12
Speaker 5: they want to you know, they really want to be
31:15
Speaker 5: self sufficient.
31:16
Speaker 1: And oh you mean they want to get back up
31:19
Speaker 1: on their feet again.
31:23
Speaker 5: I've sort of put them back up there. But they
31:27
Speaker 5: feel oh no, obviously, you know, they feel a bit
31:30
Speaker 5: sort of you know, I mean of proud people, right,
31:35
Speaker 5: and they did have a very successful business. But I
31:40
Speaker 5: mean they're in the late fifties, I mean, is it
31:48
Speaker 5: possible for them to you know, back in the market.
31:55
Speaker 2: Well, I mean again, you know, you're saying that they're
31:57
Speaker 2: in Spain, so I don't know what this. You know,
31:59
Speaker 2: what the environment is like in Spain, but you know, fifties,
32:03
Speaker 2: I mean it's still pretty young.
32:05
Speaker 1: I guess my question is yeah.
32:07
Speaker 5: Yeah, yeah, yeah, yeah, yeah, yeah, yeah. Look, the environment
32:10
Speaker 5: is very low interest rate, they have a role in
32:17
Speaker 5: income from a small business that they have, and yeah,
32:23
Speaker 5: it's just sort of like, well, you know.
32:26
Speaker 2: Well, it seems to me that if they you know,
32:29
Speaker 2: that sounds like they've still got a bit of a base.
32:32
Speaker 2: So if they're motivated and they're focused, it doesn't seem
32:35
Speaker 2: to be any reason why they shouldn't be able to
32:37
Speaker 2: because you know, late fifties are still very young.
32:39
Speaker 1: Also, Andrew, I guess if you're in a position where
32:41
Speaker 1: you can bail your in laws out in a business
32:43
Speaker 1: in Spain, then you probably know a thing or two
32:46
Speaker 1: about money. Anyway, don't you.
32:48
Speaker 5: No, I don't not at that age.
32:52
Speaker 1: What age?
32:54
Speaker 5: Well, I think once it gets to a point in time,
32:57
Speaker 5: I mean, you know, you just take this some more
33:00
Speaker 5: mortgage at what twenty years? I mean? Yeah.
33:05
Speaker 2: Well, look, I've got two friends of mine in the
33:06
Speaker 2: early eighties who are still doing property deals, right, so
33:11
Speaker 2: they're both super sharp, and one's bought three properties in
33:15
Speaker 2: the last couple of years now obviously there and you
33:17
Speaker 2: know they've got quite a good financial base. And then
33:19
Speaker 2: that particular person is not in New Zealand. But I
33:22
Speaker 2: just think when there's a world is away.
33:24
Speaker 1: Okay, Hey, thanks for you call, Andrew. That was That's
33:27
Speaker 1: an interesting one, isn't it. Hi, Lisa, we had properly
33:30
Speaker 1: investor hobbyists. Hobbyists. We came to you for advice confirmation
33:35
Speaker 1: on whether I could afford to retire at sixty one.
33:37
Speaker 1: My wife has just reminded you said go for it
33:42
Speaker 1: and you will never run out. Well, you're correct. Now
33:44
Speaker 1: we're seventy seven and living the good life. Always enjoyed
33:46
Speaker 1: your books and listening to you. That's from Donald.
33:47
Speaker 2: Oh that's very nice.
33:48
Speaker 1: I think I worried where that text was going for
33:50
Speaker 1: a second. We came here for advice and it's all
33:52
Speaker 1: to tears.
33:54
Speaker 2: Not No, it's good.
33:56
Speaker 1: I did pre read that anyway. Another one here says
34:03
Speaker 1: high term. Not many people talk about the cost of rates,
34:05
Speaker 1: insurance and maintenance versus rent. And actually that is something
34:10
Speaker 1: I was even chatting about because we're getting some stuff
34:13
Speaker 1: changed to our place, and I said to one of
34:15
Speaker 1: the builders. You know, I'm mates with my builder, but
34:18
Speaker 1: one of the guys he's working from, we're just talking
34:20
Speaker 1: about and I said, God, it's never going to end
34:22
Speaker 1: and he said, no, it's not either, but of course
34:24
Speaker 1: he's a buildery caon. But that is a reality of
34:27
Speaker 1: owning a house is that you're always going to have
34:30
Speaker 1: things you have to work on, I guess, unless it's
34:32
Speaker 1: brand new and spiffing.
34:33
Speaker 2: And look, if you can get through your life and
34:35
Speaker 2: rent and then build up your keipi saver and an
34:38
Speaker 2: investment portfolio so you've got plenty of money to be
34:41
Speaker 2: able to afford to rent and have a lifestyle, then
34:45
Speaker 2: you know, owning a home is not necessarily know, super important.
34:48
Speaker 2: But the reality is that I've seen is that for
34:51
Speaker 2: most people, they're just the compulsory savings nature of a
34:54
Speaker 2: home is actually super valuable because everyone says, oh, no,
34:58
Speaker 2: you know, I won't buy a home, But I often
35:00
Speaker 2: find those people get to later in life and they
35:02
Speaker 2: don't have much to financially support themselves.
35:06
Speaker 1: Somebody else has written that said, b there are cheap
35:09
Speaker 1: homes around, but people don't want to move to areas
35:12
Speaker 1: in order to get a cheap home, for example, two
35:15
Speaker 1: bedroom ninety nineties home in town and in Chicago two
35:18
Speaker 1: ninety k in Auckland eight ninety k. Well that as
35:23
Speaker 1: an argument also for considering whether you might want to
35:25
Speaker 1: just buy an investment even if you don't want to
35:27
Speaker 1: live in it.
35:27
Speaker 2: Yeap, yeah, ablutely.
35:29
Speaker 1: Yeah.
35:29
Speaker 2: So again it keeps coming back to it's not necessarily
35:32
Speaker 2: just about the home. It's about building some kind of
35:35
Speaker 2: investment portfolio that to provide you with some income and
35:39
Speaker 2: some security when you get older.
35:41
Speaker 1: When you were looking at property in your property investing
35:45
Speaker 1: days and choosing, did you did it take a while
35:47
Speaker 1: for you to discipline yourself to choose a property based
35:50
Speaker 1: on the numbers rather than whether it looked good in
35:53
Speaker 1: the real estate magazine?
35:55
Speaker 2: Not really, probably because I've always had spreadsheets.
35:59
Speaker 1: Salves, so you were numbers.
36:01
Speaker 2: Yeah, I was numbers, you know, like I just have
36:02
Speaker 2: a little spreadsheet and you know, and there's the days
36:05
Speaker 2: before trade me and I'd go round and i'd look
36:08
Speaker 2: at the in the paper and you'd write and ringing
36:11
Speaker 2: that beage and get some numbers. And then I deal
36:12
Speaker 2: with these numbers. And then i'd have a clipboard and
36:14
Speaker 2: I'd drive around Auckland and on the weekend and then
36:17
Speaker 2: I just put off as them based on you know,
36:19
Speaker 2: the numbers. It's totally about the numbers.
36:21
Speaker 1: Yeah. Well, I mean, I guess so you haven't had
36:23
Speaker 1: to battle that. But for people who want to look
36:26
Speaker 1: at something, I think people make a mistake of thinking
36:29
Speaker 1: how would I feel about living here, when in fact
36:31
Speaker 1: maybe you've got to get away from the esthetic and
36:33
Speaker 1: just think how does this stack up?
36:36
Speaker 5: Yeah?
36:36
Speaker 2: And I think the other thing that you find, you know,
36:38
Speaker 2: talk to agents, and I took to my friends that
36:39
Speaker 2: are investors and traders and they say, oh, you know,
36:41
Speaker 2: people don't want to buy the shitty looking houses. You know,
36:44
Speaker 2: they want them all done up and renovated.
36:46
Speaker 1: Right.
36:46
Speaker 2: But the thing is is if you do buy a
36:48
Speaker 2: house that is got an overgrown law and you know
36:51
Speaker 2: it does have the nineteen seventies or eighties wallpaper. It's amazing,
36:55
Speaker 2: you know how much cheap you can buy that house,
36:56
Speaker 2: and if you put in a bit of grit over
36:58
Speaker 2: a few years, you can do a lot of that
36:59
Speaker 2: renom work yourself. Maybe not your kitchens, in your bathrooms,
37:02
Speaker 2: but certainly you're painting and you're tiling up the backyard
37:05
Speaker 2: and you know some of those basic things.
37:06
Speaker 5: Right.
37:07
Speaker 2: It's a really great way to get ahead financially, but
37:09
Speaker 2: there's a trade off.
37:10
Speaker 1: Yeah, that's probably why I do my own plastering, and
37:13
Speaker 1: but I must have made I'm gretting my teeth about
37:15
Speaker 1: the idea of doing quite a complex job right now.
37:17
Speaker 1: I'm like, oh gosh, but you know what's better than
37:19
Speaker 1: paying someone else to do it? As long as it doesn't,
37:21
Speaker 1: of course, all fall off.
37:24
Speaker 2: At least now you've got YouTube, right, so you can
37:26
Speaker 2: look it off on YouTube and get some greatation.
37:28
Speaker 1: Some of those videos from different hardware companies as well.
37:31
Speaker 1: There's some great stuff out there. Hi, Lisa, my wife,
37:34
Speaker 1: two children, and I are living in a family farmhouse
37:37
Speaker 1: rent free and Ernie, well that's okay, our family farmhouse
37:41
Speaker 1: rent free and earn one hundred and thirty k combined.
37:43
Speaker 1: We'd love to build or buy our own home, but
37:45
Speaker 1: get stuck when we hear from people like you that
37:48
Speaker 1: we should buy investment properties. We've saved two fifty k,
37:51
Speaker 1: but can't decide what to do next. I guess there're
37:55
Speaker 1: any guidance which might steer them, help make your mind up.
37:58
Speaker 2: I mean, the way that I kind of look at
37:59
Speaker 2: it is I go, you know, you're let's say you're
38:02
Speaker 2: thirty and by the time you want to get to
38:04
Speaker 2: sixty and you want to have X dollars, And it
38:06
Speaker 2: doesn't necessarily matter what you buy in terms of investment,
38:10
Speaker 2: whether it's home investment, property shares, it's just whatever you
38:14
Speaker 2: do you want to get to that pot of money,
38:16
Speaker 2: and it may be that you change the type of structure,
38:18
Speaker 2: all the type of things that you own around. Like
38:20
Speaker 2: like I've saying before, you know, I bought my own
38:23
Speaker 2: home and then I sold it, and then I ended
38:24
Speaker 2: up buying range properties for a number of years, and
38:26
Speaker 2: then I re organized things again and then sold a
38:30
Speaker 2: couple and then brought a home. So you don't have
38:32
Speaker 2: to make a decision today what you do for the
38:34
Speaker 2: rest of your life. It's just about moving yourself forward,
38:36
Speaker 2: so you're always.
38:37
Speaker 1: Growing in money and make a decision.
38:39
Speaker 2: Make a decision now.
38:40
Speaker 1: Yeah, okay, hopefully that helps you a little bit. Anyway,
38:43
Speaker 1: we'll be back in just a moment. It's seven and
38:44
Speaker 1: a half minutes. It's a six News Talks the'd be
38:50
Speaker 1: it's my producer tire is loving the fact that I've said, yes,
38:53
Speaker 1: we can have themed music if you like. If we're
38:55
Speaker 1: talking about money, find some money songs and of course
38:57
Speaker 1: there we have abba always time for a bit of average.
39:00
Speaker 1: But don't you think you Lisa, I'm going through a
39:02
Speaker 1: bit obviously. I've listened to a bit of air because
39:04
Speaker 1: my Instagram, the feed is just throwing me a whole
39:07
Speaker 1: lot of ebber stuff at the moment.
39:09
Speaker 3: That end.
39:09
Speaker 1: What goes back to a crush I had on Agnefield
39:11
Speaker 1: when I was eight years old. I think something. Anyway,
39:14
Speaker 1: Hey Lisa, if people want to catch up with you
39:16
Speaker 1: Acumen dot co dot nz.
39:19
Speaker 2: That's correct.
39:19
Speaker 1: Yep, thanks very much. That wraps up the show. Thanks
39:22
Speaker 1: my producer, Tyra Roberts. A Sunday at six is next.
39:26
Speaker 1: And if you want to catch any of the hours
39:28
Speaker 1: you've missed them to go to iHeartRadio and look for
39:31
Speaker 1: the Weekend Collective podcast. Have a great evening. I'll catch
39:34
Speaker 1: you again shortly