Thrive Investment Partners are financial advisers specialising in New Zealand property.
We help Kiwis build wealth through property investment using our extensive experience, market knowledge and track record of success to help you build a bright future.
Save Cash By Investing In The Right Property | Ep. 45
With news of some major banks now dropping their interest rates below 6%, many investors have brought their attention back to the cash flow component of their current or future investment properties.
One of the most commonly discussed pieces of information is the weigh-up between how cash flow is affected between new and existing properties.
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The Best Time to Buy | Ep. 44
When's the best time to buy?
It's a question we get every week at Thrive, and it is fully justified. Who doesn't want to know when the best time to buy is?
Unfortunately, there is no silver bullet to answer this question. But there is data out there that indicates when a "good time to invest" is
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Picking The Strength of The Market | Ep. 43
You'll often hear people talking about how hot or cold the property market is, but how do you know what the market is really like?
One of the best indicators of the strength of the market is to look at how long properties take before they sell.
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How Competition Affects Property Investors | Ep. 42
The economics of competition in business is a well-documented area and has sparked plenty of interest over the years.
Have you ever played the game 'Monopoly'?
If so, you would have had a brief insight into the world of competition in business. For example, if one person owns all the properties, they rule the game and have a monopoly over their other players, but if ownership is spread across the players, the game is much more competitive.
This concept is scattered throughout the economy and is the foundation of price control amongst many businesses.
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The Key To Investment Success | Ep. 41
Everyone wants to earn the highest returns on their investments, but what if we told you that the highest return isn't the number one factor for success?
You might ask yourself then, what is the greatest factor that leads to a successful investment?
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Don't Rely On This For Your Retirement | Ep. 40
For most people, the reason they invest is to prepare themselves for a fruitful retirement. And as you might imagine, this is easier said than done. The sentiment is right. If you want to live a fruitful retirement, you need to have a sum of capital to live off. But the real question is, how do you do this? And what shouldn't you do?
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How To Spot A Soft Market | Ep. 39
With the current age of information, it's easy to get caught up in the array of news stories, articles advice, and opinions from self-proclaimed experts. And, out of all this, it can be hard to see what the truth is.
Falling down the rabbit hole and blindly taking incorrect advice can lead to negative outcomes due to poor investment choices and lack of direction.
That's why you should always rely on evidence-based research to answer all the questions you have.
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The Deposit Dilemma | Ep. 38
Have you ever wondered where your deposit actually goes when you purchase a property off the plans? It is a question we get asked a lot and it's one that is often misunderstood by purchasers.
Before we get into the nitty-gritty of where your deposit goes, it's important to understand what a deposit is. A deposit is essentially a down payment you make to secure the property you intend to purchase.
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Why You're Susceptible To Losing Money | Ep. 37
In the world of investment, your mindset remains one of the key factors that separates good investors from the rest.
A good investor doesn't need to have a crystal ball in from of them but having a grasp on what & why you're investing is critical. In the timeless words of Warren Buffett:
"Risk comes from not knowing what you're doing" - Warren Buffett
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The OCR Explained - How Does It Affect You as a Property Investor? | Ep. 36
If you have been following the news recently then you would have heard lots of mentions of the Official Cash Rate, or the OCR as it's commonly referred to.
The OCR is a very important piece of the financial landscape in New Zealand, but do you know what it is and how it affects you as a property investor?
The Reserve Bank of New Zealand (RBNZ) defines the OCR as "the interest rate set by the Monetary Policy Committee". This is a fancy way of saying that the OCR is a policy that the RBNZ uses to influence the price of borrowing and saving money in New Zealand.
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Your Guide to Becoming a NZ Property Investor | Ep. 35
Learn the basics of buying your first investment property. This guide is intended to introduce the key points to consider when becoming an investor, such as:
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7 Reasons Why Property Investment Just Makes Sense | Ep. 34
Deciding on a suitable investment plan is hard enough for many people in New Zealand,
and people ultimately find themselves looking around for the silver bullet that will get
them rich quickly, and last forever.
Unfortunately, such a thing doesn’t exist.
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What Does It Take To Retire and How Do I Calculate It? | Ep. 33
Retirement is one of the key reasons investors turn to property in the beginning because they understand the benefit of leverage and capital gains. Make no bones about it, retiring with a sufficient income at a reasonable age is subjective, but in any case, it takes a lot of capital to make it possible.
Property investors used a calculated investment approach when it comes to retirement
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How Much Money Do I Need To Invest? | Ep. 32
One of the biggest barriers to entry for property investment is the deposit requirements so it's good to know how much you need and where to get it from.
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Pay Less, Invest Faster | Ep. 31
There's often debate from investors on the best way to structure their mortgage payments in order to maximise return, but very seldom do they ever come out with a compelling answer.
Here, we are going to discuss how investors can pay less on their mortgage, and invest faster. Remember, this is only based on investment property, not your home-loan payments on your own house.
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Is Property Investment Still Worth It? | Ep. 30
With the rapid rise in prices in 2021 and now the rise in interest rates in 2023, there is a lot of negative press around about the viability of property investment, so is it still worth it?
There are a number of factors to consider when trying to answer this question and it boils down to these three key questions:
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Reducing The Volatility of Your Investments | Ep. 29
Volatility is a simple, but very important concept for an investor across any asset class.
We can define volatility as "a term that describes when a market or security experiences a period of unpredictable, and sometimes sharp, price movements".
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Can Developers Cancel My Contract on Me? | Ep. 28
This is a question that gets floated around a lot with purchasers who have heard bad-news stories about greedy developers canceling contracts. And fair enough.
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Don't Ask For a Discount, Ask For a Cashback | Ep. 27
In 2021, when the property market was hot, developers would seldom offer incentives to get deals across the line because there were more buyers than listings so they knew they were highly likely to find another buyer.
Now, in 2022, there has been a change in the market and there are now more listings than buyers which represents a great opportunity for investors to pick up some high-quality deals.
The slowdown in the market has resulted in developers needing to offer incentives to get sales across the line.
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Pay Off Your Home Mortgage Fast Using Investment Properties | Ep. 26
Paying off the mortgage on your own home is one of the biggest goals for a lot of New Zealanders.
In most cases, people purchase their own homes with a 30-year loan term and pay this off gradually over this time. It's a reliable way of paying off your own home, but surely there is a better way?
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New Builds vs. Existing - What Should I Choose? | Ep. 25
When searching for an investment property, you're inevitably going to come to a point where you need to decide between purchasing a new build or an existing property.
For a lot of old-school investors, the shift from old to new can be quite daunting because they have always been taught that existing homes have more land which equals more capital gains.
This isn't strictly true.
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Don’t Buy Just Because It’s Cheap | Ep. 24
You get what you pay for. This is a common proverb that is thrown around a lot in reference to low-priced goods and services. But, this is absolutely true for higher priced goods such as property too. When it comes to investing in property, cheap isn't always good. In fact, if it's too good to be true, it probably is.
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Avoid Missing Out On The Deal | Ep. 23
Once the initial research is done, it's time to get the property off the market.
First-time investors can often find this part of the process quite daunting because it is the first real step toward purchasing the property.
However, investors should take a lot of confidence that this step is safe and will not lock them into any agreements.
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When Can I See My New Property? | Ep. 22
It can be hard for first-time purchasers of off-the-plan property to grasp the concept of buying a property that doesn't exist yet.
The reality is, when you buy something off the plans, you're essentially just buying a concept.
For this reason, people want to know exactly when they can expect to see the property they purchased.
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Cost To Own - What Else Could I Do With That Money | Ep. 21
It's no secret that investment properties can often cost you money each week to own.
This is due to the costs (mortgage payments, rates, insurance, etc.) outweighing the rental income you receive every year. Finding cashflow-positive properties can be few and far between, and a lot of investors think this is the end of the road for investing.
But, does a negative cashflow property mean property investment isn't worth it? No.
Let's see why.
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What Happens If My Property Doesn’t Get Built | Ep. 20
Buying off-the-plan requires you to put trust in a developer that they're going to build the product that you signed a contract to receive. But what happens if the property doesn't get built?
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Why You Should Invest Outside Your Own Neighbourhood | Ep. 19
Building a successful property portfolio comes down to many factors, but perhaps none is as essential as investing in the right locations.
As they say, location location location.
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The Power of Leverage | Ep. 18
Leverage can be described as "using borrowed money to make more money than it costs to use borrowed money" and makes up one of Thrive's five key investment concepts.
Put simply, leverage is using the banks' money to make money for yourself. So, how can we achieve this?
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Why Would I Use a Mortgage Broker? | Ep. 17
Getting lending is one of the biggest obstacles investors faces when purchasing an investment property, so finding the right person to help you get the lending is essential.
A lot of investors are unsure whether they should use a broker or go directly to the bank, so what’s the difference?
At the end of the day, both the bank and the broker are trying to get you lending because they are incentivised to do so – that’s how they get paid. But there are more factors to think about than that...
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Waiting to Buy Could be Killing Your Buying Power
Waiting to find "the perfect deal" could be losing you money and you just don't know it yet.
In theory, waiting until we reach the bottom of the market, or waiting until you find the best deal makes a lot of sense but is this achievable?
It's important to remember, we never know where the bottom of the market is until we've passed it. No one has a crystal ball and picking a winner is impossible, so picking the perfect time in the market just isn't feasible. Time in the market always beats timing the market.
Therefore, the best time to invest in property is when you're in a financial position to do so.
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How Risky is Too Risky? | Ep. 15
Risk is everywhere.
You are susceptible to risk when you drive to work, walk to lunch, and everything in between; some of it you can control, and some of it you can't.
When it comes to investment risk, there are certain elements you can control and some you cannot. Once your money is invested in the property market, you are in some ways at the mercy of that market and your returns will be dictated by the performance of that market.
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Benefits of a Due Diligence Clause | Ep. 14
Buying a property off the plans can be quite daunting for a lot of first-time investors so it's important to understand what tools they have at their disposal when entering into a sales and purchase agreement with a property developer.
Once the contract is signed, the investors can do their homework to make sure the property stacks up - our team will help guide you on this.
Within most off-the-plan contracts is a due diligence clause.
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Dissecting Floor PlansDon't underestimate the power of a good floor plan when you're trying to rent out your investment property.
With lots of new build townhouses coming to market, it's easy to get swamped into the deal and forget about small factors that are still important... such as the floor plan.
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What are Debt-To-Income Ratios? | Ep. 12
Although not formally in place, it is convenient to consider the debt-to-income ratios (DTI) as one of the bank's new lending criteria.
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Turnkey vs. Progress Payments | Ep. 11
Buying off-the-plan can be daunting for investors who are used to the traditional real estate model of buying existing homes.
However, with the current tax laws introduced by the Labour government, existing properties have become approximately 40% more expensive to own, compared to new build properties.
Resultantly, there has been a massive shift for investors buying off-the-plan in order to get tax benefits as well as lower deposit requirements.
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Property Investment Can Makes Sense When Interest Rates Are High | Ep. 10
There's no doubt that at the time of writing this, everyone in New Zealand has been impacted in one way or another by the high inflation rates of recent times.
For many, inflation is something that they have heard of but probably don't truly understand how it impacts their investments. Before we can understand that, it's important to know how inflation occurs.
Generally speaking, higher interest rates are policy responses to counter rising inflation.
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How To Make Money by Buying Early | Ep. 9
Investing in an off-the-plan development that is 12-18 months away from completion can be a daunting task for many newbie investors but there is money to be made if done well.
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Your Guide to Becoming a NZ Property Investor | Ep. 8
Learn the basics of buying your first investment property. This guide is intended to introduce the key points to consider when becoming an investor
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Common Clauses in a Sales And Purchase Agreement | Ep. 7
A Sales & Purchase Agreement (SnP) can often be long and complex, so for first-time investors, it's worth knowing what to look for when you engage in a contract. There has been a big shift into buying off the plan properties because of the tax benefits and other incentives so it is worth focussing our attention on these types of contracts.
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Reducing Interest Rate Risk | Ep. 6
Interest rates are a hot topic right now and for good reason. Since the lowest point in July 2021 when interest rates were around 2%, to the current rates of approximately 6%, rising rates have been hampering investors with the rising cost of interest payments.
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Who Can Sell My Property? | Ep.5
At some point during your investment journey, you're going to find yourself in a position where you want/need to sell one of your properties. This begs the question, who can I get to sell my property?
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Why You Should Invest in a Buyer's Market | Ep. 4
At the peak of the property market last year, sales volume was through the roof. For investors that got on the trend early, they have already seen gains in their equity, but for investors that were late to the party, they have had to stomach some losses in prices & equity.
Now, we have moved into a buyer's market where there are more listings than buyers. So, what does this mean for property investors?
The OCR Explained - How does it affect you as a property investor? | Ep. 3
If you have been following the news recently then you would have heard lots of mentions of the Official Cash Rate, or the OCR as it's commonly referred to. The OCR is a very important piece of the financial landscape in New Zealand, but do you know what it is and how it affects you as a property investor?
Why You're Susceptible To Losing Money | Ep. 2
In the world of investment, your mindset remains one of the key factors that separates good investors from the rest. In recent times, we have seen massive rises in property prices across the country as well as a drop in prices too. This volatility has caused some investors to get spooked or shy away from the big picture.
The Worst Investment You Can Make | Ep. 1
"Buy land, they're not making it anymore" - Mark Twain
Why are we quoting Mark Twain? Well, years on, this advice rings true for property investors because one of the biggest drivers of capital growth is land appreciation. There are two types of assets, ones that appreciate in value, and ones that depreciate in value.
Welcome to Thrive’s newest channel: Thrive Investment Bites
Come along with us as we explore property investment concepts in New Zealand to help educate current and new property investors trying to build wealth.
Thrive Investment Partners are property-centric financial advisers that help New Zealanders create generational wealth through evidence-based property investment choices. We have top-of-the-line modelling tools and technology which will help you build a structured investment plan and put your best foot forward when it comes to investing.
Every week we’re going to produce investment bites that will give you an insight into the latest property investment concepts, including economic conditions, the investment landscape, how to dissect floor plans, and much more. We also have written versions of these investment bites with diagrams and illustrations, which you can find on our website, www.thrivepartners.co.nz.
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