The figures stack up

Let's look quickly at the reasons for purchasing investment property, and why Avana provides such a simple, time-proven solution.

First of all, retirement planning isn't going to be solved by the government alone. By 2051 the number of New Zealanders who will be over 80 years age will have hit half a million (300,000 women and 200,000 men.) People are living an extra 20-25 years after they retire. The sad part is, approximately 63% of those who are older than 65 will be earning less than $15,000 per year. If you’re not wanting to spend your retirement years living hand to mouth you'll need an investment that can reliably give you income every month.

Let's look at where most New Zealanders stand in terms of wealth today.

  • The average nett worth of your average Kiwi is approximately $60,000
  • 16% of Kiwis have a NEGATIVE nett worth
  • 30% have a nett worth over $200,000
  • The most valuable asset is residential property, accounting for approximately 43% of total assets
  • The largest debt is mortgage debt, which makes up 80% of all debtSourced from 2004 Household Savings Survey

You can see now why superannuation has been such a hot topic over recent years. The need for most New Zealanders to change their investment and saving habits is dire.

The good news is there is something you can do about it. The question is how?

Most financial advisers will tell you to diversify your investments. Putting all your eggs in one basket is never wise, and you need to consider not only investments not only for their ability to grow or give you income when you need it, but also for their ease of being cashed up, or their ability to you leverage when you want to borrow from the bank to fund more investments.

Residential property gives you all of this. Dollar for dollar, sharemarket returns tend to match those of property. But you need to have a strong heart because sharemarkets go up and down like rollercoasters. Properties also go up and down, but in the years from 1987 to 2003, despite sharemarket crashes, wars in the Middle East, the Asian financial crisis, 9/11 and the SARS outbreak, New Zealand house prices continued to grow.

With KiwiSaver being promoted heavily, it’s easy to think the government are taking care of it for you. The table below shows an investment of $100 per week into a Superannuation Fund, versus the same contribution towards an Investment Property purchased at $420,000. 

The growth on your $100 invested in a superannuation fund is on the actual monies deposited.

The growth on your $100 invested in an Investment Property is on the market price of the property.

Residential property provides you with some very simple assurances:

  • An investment that gives you full market returns (rent) from the beginning, despite the fact you may have contributed no more than a deposit
  • An asset you can cash up at any time, and one that the bank respects
  • A tax deductible business
  • An asset you can use to create other assets (more property)

 "For the last 5 years, I have been considering purchasing an investment property. Thanks to the team and their perseverance, here I am with my first investment property.

I was given sound investment advice, you would never regret - Look what happened for me!!"