How To Save $100,000 & Is Buying a Property Overrated? Luke Kemeys DEBUNKS Money & Finance Myths

[@smw9899]

My 2 favorite NZ podcasters combined. Been waiting for this one!

[@chrisgoddard526]

Great episode Dom. Lukes an absolute legend .

[@Kiwisnrl]

Being a finance analyst my biggest biggest piece of advice to Kiwis is to not take on a million dollar mortgage unless you are at the top of your career. So many don't understand that repayments of $5000-$8000 a month x 12 is close to $100k a year. This means a property would need to be going up well over 12-15% real terms after accounting for inflation per year to be better off overall. Property prices are well and truly over cooked now.

[@TB1M1]

Buying property is a lazy investment once the house is built. If NZ got that capital out of static assets like houses and into the economy it would improve the worth of NZ economy and NZD.The real problem with property is the return is terrible compared to US stockmarket, in short if you want to lose money invest in NZ property. Also understand for value of assets to appreciate they have to exceed the rate of inflation or S&P500, over any length of time housing doesn't achieve this as the governement debases the currency.

[@Kiwisnrl]

Each situation is different. Depends on the financial acumen of the individual and their circumstances. One end making returns far far greater than the stock market, the other enriched with debt levels that will hinder their circumstances

[@TB1M1]

Stock market is better than property. Period. Anyone who contests this hasn't done their homework. On the other hand NZ stockmarket , well thats a great place to lose money.

[@Kiwisnrl]

@@TB1M1 I've got a degree in it. Good luck with the All birds losses

[@TB1M1]

@@Kiwisnrl Michael Saylor has already succeeded

[@Kiwisnrl]

@@TB1M1 Good on one Michael Saylor, and multiple of investors who've lost per major share sale block. Stock markets move approx 50% up, 50% down per year. 0.3% no change. Generally all at random. One wins, maybe with a significant share sell up/ major block holder while many buying that block lose. You'll find like any other system,its not fair game whatsoever.

[@TheTrento86]

Could of kept listening if that was longer, great poddy👍🏽

[@taylorwilson5770]

Good and bad debt with your time was a big 💎 for me..

[@TheMarathonomahos]

If your house goes up $50k a year, and you can pay it off in 5 more years, you have $250k minus your mortgage balance owing. No brainer in that respect. However, if you can invest money at a reasonable return, you get a bit of both worlds. However the advantage of paying off your mortgage faster, is you are virtually guaranteed not to lose money.

[@Kiwisnrl]

This guys ''millionaire'' paper status is all property equity gain based not business

[@Kiwisnrl]

The doubling of property every ten years is not sustainable. Best of best properties will keep going up and could be consistent with such but most properties won't. Gone from household with 1 parent working and one income and a mortgage of 2-3x to now both parents working full time and debt of 8-10x. In order for the debt levels and everything continue would logically need households and 3 person or 4 person couples.

[@TB1M1]

It's not doubling due to inflation, actually the asset is falling in value. That is a common fallacy. When compared to US stocks NZ property return is terrible.

[@Kiwisnrl]

@@TB1M1 I'm not referring to inflation, I'm saying that for realtors and investors/speculators beliefs to hold true looking at historical timeline there ''golden view'' would require households on 4 incomes to meet house prices being double again. Down in Lakes district this was an idea floated where agents expected houses to ''couple up'' to meet the average prices and debt repayments - absolutely true as Qt would be at prices now where speculators expect prices to be if were to double

[@Kiwisnrl]

@@TB1M1 Holding consistent with my comment about the best of the best continuing to go up and up too - you look at examples say oneroof property promotion of a house in one of Akl top suburbs expected to sell between 2.5M and 3M - if it gets the 2.5M it has gone up 100x value what that owner paid 40 years ago

[@Kiwisnrl]

Another one in Kelvin Heights brought for like 9K 40 years ago sold for over 1M, something like a 100-110x return