The Wild West Day’s of New Zealand Property

For those of you who read the blog way waaaay back in the day, and have a robotically good memory, you may recall that in 2014 I bought a house in New Zealand and in 2015 I bought a second one.

I’m not rich by any stretch, I’ve never been given anything and I’m not even a particularly good saver; but there is a story, and this is how it went down.

For an 8 month stretch in 2013 between working for Walt Disney World and Disney Cruise Line I was working as a salesman for an insurance company.

During this time I lived in a hooker den apartment (no real hookers, but the paint was peeling, tiles were all coming loose and the bathroom lightbulb was pink….)

It’s since been demolished, but while I lived there the rent was super cheap and I was making bank commissions because even though I hate being a salesman, I’m really good at it.

Anyway, I was making lots of money and was depressed because I wasn’t performing; my only happiness was knowing that I was saving as the previous few years I’d been in university and America was dirt poor from both experiences.

So I relished in refreshing my bank account that was healthy for the very first time in my life.

On really sad days I’d open my bank app and just sit there clicking the total sum figure on the app home page and refresh the balance and see it confirmed that yep, I’d saved more than $12.

Anyway, 8 months into the year I was cast by Disney Cruise Line and was back in America but not depressed anymore, so I figured (and rightly) that I would blow any money I earned there.

Cruise ship employees that work Disney Cruise Line hours lose their minds and blow their money like crazy.

So before I could do anything with it I used all of it as a deposit in a house in Wairoa, a small town in Hawkes Bay, New Zealand.

I’m an Australian citizen born and raised, so why did I buy in New Zealand?

In those days, New Zealand was sizzling hot for investors. Back in what I like to call the “Wild West” days, New Zealand had curiously lax investment laws which had fostered a free for all bananza.

Unlike Australia, New Zealand had no stamp duty (an enormous tax) and at the time had no capital gains tax.

It was tax heaven, and even without a New Zealand tax number (an IRD number) someone like me could swoop in and pick up one of the extremely reasonably priced properties that were ripe for the plucking.

Those were the days..

So even though I was a cast member on a cruise ship in Canada, buying a property in a country I’d only holidayed in felt like a smart idea and something that wouldn’t be hard.

Well I was wrong about the hard part, but it was possible.

Without so much as a New Zealand bank account, tax number, nothing; I put an offer on and bought a falling down 2 bedroom house in some of New Zealand’s most beautiful countryside.

The process was very long.

I included a 12 week settlement as a condition of the sale because I was on a ship and in Canada, and thank God I did. In those days most forms needed to be physically signed, so I was back and forth to the post office physically mailing forms I had printed off my ship computer, signed and put into a first class envelope.

Several forms had to be witnessed by someone from a very short list of trusted officials, only one of which lived in Canada.

Originally I had printed the list of trusted people which mentioned ‘lawyers’ as people who were trusted by the New Zealand Government. So I had my law trained friend on the ship sign my form and sent it in.

It was after sending that form that I was informed that a lawyer could only be trusted if they were certified by the New Zealand Government and living in New Zealand.

So it was back to the list.

The only person on the list I could conceivably get was the Consulate General in Vancouver.

So out of necessity I was also back and forth between the ship and the New Zealand Consulate in Vancouver where I’d visit the Consulate General who’d sign and stamp all my forms.

She did all of them for $20 which at the time felt fair, only years later did I learn while applying for my Chinese visa that this price is insanely low and she was probably just being a super nice person.

I only just made my 12 week settlement and within 16 or 20 weeks it was all over.

I was now broke but owned my first property; a property quite far away from anywhere I’d ever been in New Zealand.

I had emails that confirmed that I owned it, the woman who sold me the property had signed on to manage it, and I had a fresh, never been touched bank account that was hitched up to my sparkly new mortgage.

I had about a week of bliss before the shit met the kiwi flavoured fan..

Travelers are Investors. Simple.

If there’s something that gets me more excited than anything else, it’s seeing young people who are good with their money.
Now I say “young people” like I’m a thousand years old (I’m 24) but when your my age and younger, not only is it ok to be bad with your money, it’s expected and even celebrated!
How are we suppose to achieve everything we want in life if we’re clouded by never ending debt? Or a constantly empty bank account?
My favorite show in the world is Shark Tank, an investment reality show on ABC, mostly because of the advice and zingers that come out of the mouths of the investment sharks.
They talk about doing without until you can afford to buy what you want. To only have a credit card to build credit rating, and only buy something if you can pay it off the credit card that same day.
I’m reading a book written by one of the sharks (Kevin O’leary) and he talks about thinking while about to buy something “will I want this a year from now.”
Everything we buy is an investment, and some are going to hurt us a lot more than help us.
A friend of mine has a boyfriend who just bought a $25,000 car on a loan. I nearly passed out. With interest he’s going to pay probably $40,000 for that car, which is actually a conservative guess because hes paying back minimum payments, so it could be much more. But the second he drove it out of the car lot, his investment lost a third of its value. By the time he’s payed it off in no less than 6 years, he may have payed over $40,000 for an object that may be worth $8,000. This is why banks are the best businesses in the world.
How are we suppose to travel in our 20’s while we’re unmarried and free, when we’re burdened by being unable to pay for it.
I have been trading shares for years, and though haven’t made much more than $500 doing it, I have built up a love for investment.
Through action I’ve taught myself how to trade, what to look for, and that I don’t invest in anything that doesn’t want to pay me a dividend. As time goes by and my portfolio grows, that dividend twice a year will only grow and as I reinvest it, the growth will only go faster.
As I get older I’m looking out for other markets to invest in, but I wouldn’t have ever done it without experiment and action.
A lot of my close friends won’t do it, it does seem scary and the media does release stories every day of some guy that invested it all in a risky startup and now begs for quarters in the street.
But what I think is far more scary is seeing my money in a savings account, depreciating faster than it makes interest, and sitting merely a few clicks of the mouse away if I feel like spending some of it.
With volatile market times, settlement periods, and just plain hassle, I don’t spend the money I have in shares. So it saves.
I just want to pass on to young people with more than $500 sitting around. Invest a small amount and stay comfortable at first, invest in a dividend paying company that will work to make that payment happen. If they don’t have to pay a dividend then your relying on that less transparent company increasing in value faster than your money is depreciating.
And buy into a company that’s not going anywhere. Being from a country like Australia with limited population there are some companies our country relies on, invest in them. And only invest what your ok with losing at first, just so you can sleep at night. Build a habit and learn to enjoy it! Your part of something now! You are part of the greater world! It’ll do you good in the long run, and may just pay for your trip to China. 😉
I’m not a financial advisor by any means, any financial rant on my blog is just my own opinion. If you wanna talk more about it feel free to comment and subscribe. 🙂 Talk soon!