Homes As Investments

The following is a selection of articles mainly from January 2005 to the present. To explore this topic in more depth and access earlier columns, please use the search box.

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Articles

Syndicated column June 24 2008: Hope and help for first home buyers

Things are looking up for would-be first home buyers, left out in the cold in the recent house price boom. The numbers are finally getting better, and government assistance is increasing.

NZ Herald June 21 2008

Q&As: 2 Q&As on whether homeowners should sell and be renters for a while, to cash in on falling house prices?
Should 62-year-old buy a rental property or join KiwiSaver?

NZ Herald April 12 2008

Q&As: Monkey story a great yarn, but it's not about the share market.
Reader's concerns about banks' exposure to foreign exchange risk are unfounded.
61-year-old should think hard before selling her house and enjoying some of the proceeds.
Man about to retire can still get plenty from KiwiSaver.

Syndicated column March 18 2008: Choices for those hit by mortgage rate rises

The offers are already being made to people facing big mortgage interest rises. "If your lender won't renegotiate, we've got deals that will lower your payments," they say. Are these deals any good?

NZ Herald February 9 2008

Q&As: Calculator tells reader to stop saving and live it up a bit.
Reader who finds KiwiSaver nauseating has a scary list of things that could go wrong....
...But another one applauds KiwiSaver, while sitting on the home ownership sidelines.

Syndicated column November 27 2007: How same is the same housing market?

A reader has taken issue with a comment in my last column that "the vast majority of current homeowners...could just sit out a plunge in house prices, or else sell and buy in the same market and suffer no loss."

NZ Herald September 2007

Q&As: Should a couple with 3 children move to a bigger house in town or take a bet on a coastal property?
Are KiwiSaver bond funds as conservative as they seem?

NZ Herald June 2 2007

Q&As: Student allowance rip-off is not OK.
Advice for house-less Gen Xers: Buy a rental property in the provinces.
Rental property buyers feel like the scourge of society.
The cliché king has his say.
Cardboard boxes and contentment.

NZ Herald May 19 2007

Q&As: Four readers give diverse views on whether baby boomers or Generation Xers got a better deal on tertiary education, student loans, and affordability of houses.

NZ Herald May 12 2007

Q&As: Three readers defend baby boomers and suggest how today's young could afford to buy homes.
A Generation Xer speaks up for her generation.
A reader worries that apartments may lose value.

NZ Herald May 5 2007

Q&As: Auckland houses may be unaffordable, but apartments aren't.
One man is happy with is inexpensive home.
Homeowner feels anything but smug about being in the housing market.
War is declared between the baby boomers and the younger generation.
Last time New Zealand tried to control rents, it was disastrous.

NZ Herald April 28 2007

Q&As: Would-be homeowners may need to lower their standards a bit - with some help from Monty Python.
Inflation hits property at least as much as share funds.
Californian astounded by our "real estate mania".

NZ Herald April 7 2007

Q&As: Rent control would do more harm than good.
The cost of staying out of the housing market.
Reader insists it's worthwhile to try to time foreign exchange movements. It's all his!

Syndicated column April 17 2007: Obsessed with property? Not us

New Zealanders are not as property mad - or as mortgage mad - as we've been led to believe, recent research shows.

NZ Herald April 14 2007

Q&As: A tax on house sales, to subsidise first home owners, is a lovely idea that wouldn't work.
Renting and saving elsewhere can leave you better off than home ownership.
Semi-retired couple who sold their home and rent are probably doing fine.

NZ Herald March 24 2007

Q&As: Should we blame the banks for soaring house prices?
2 Q&As on the new fair dividend rate tax on non-Australasian shares - the threshold, and trying to get around the rules
2Q&As on home equity release - lifetime interest rates and break fees if you change your mind

NZ Herald February 24 2007

Seeking your questions about KiwiSaver
Q&As: Woman in mid 50s, who is renting, explores options for buying a home
2 Q&As about the $50,000 threshold in the new regime on taxation of international shares

NZ Herald January 20 2007

Q&As: Are index funds, which I recommend, inferior share fund investments, as Herald columnist Brian Gaynor claims?
A small New Zealand town has it all, a resident claims!

Holm Truths summer 06-07

The other B word: While some people find it easy to follow a budget, others struggle. Here are some tips for the latter group.
Also in this issue: From the Mailbox - Couple who sold their house save heaps by renting. But should they wait for a price fall before buying again?

NZ Herald November 25 2006

Q&As: Is it a good idea to go back to 100 per cent mortgage on rental and invest the money in a term deposit?
A reader supports gradually building up a share portfolio.
Another charity offers Christmas gifts for the needy on behalf of your friends and relatives.
Reader wants more info on charities before making gifts.
A Sydney minister's quick-witted response.
Prices then and now - and how houses fit into the picture.
Cathedral carvings show inflation is nothing new.
A reader's pie and doughnut confession.

Holm Truths Spring 06

Mortgage moves: How you can make the big loans work better for you
Also in this issue: From the mailbox - Is it a good idea to increase your mortgage and invest the money elsewhere?

NZ Herald September 2 2006

Q&As: Some options for a whinging woman who can't afford a home.
Is wealthy couple wise to do it themselves when it comes to their investments?
Reader who dislikes "that word" boycotts Toyota.
Getting mean over medians and averages.

NZ Herald August 19 2006

Q&As: The average New Zealander can't afford to buy a house, or can they? The poor don't stay poor.
How one man keeps his costs down.
Flaws with a tax parable? And a man living on $1,000 a year?
An investment adviser gives us inside info on commissions.

NZ Herald August 12 2006

Q&As: A few fewer luxuries and many New Zealanders could afford to buy homes.
2 Q&As on whether the Reserve Bank got it right with the new coins.
A financial planner objects to what I said last week about how to choose an adviser.

NZ Herald August 5 2006

Q&As: Typical but rich women ask how to find an adviser.
Does local government keep house prices up? And will they ever fall?
Let's not have the government meddling in the housing market.
Doing your homework doesn't necessarily help share investment.

Syndicated column August 1 2006: Readers' questions on renting v home ownership

My last column - which said that you may do just as well renting as owning your home, provided you are disciplined about saving elsewhere - brought interesting questions from two readers.

The first one is 40 and planning to return to New Zealand with his family. "I would be happy renting until I retire whilst growing our capital in areas other than property," he writes. "At some time later I might buy a small place to live in. However, do you think in 25 years that ownership of property might be out of reach?"

NZ Herald July 29 2006

Q&As: Should we have a new 25c coin instead of a new 20c coin, and also a $5 coin?
Is tithing the way to go? One reader says yes, another no.

Syndicated column July 18 2006: Owning your home not always the best option

Most New Zealanders grow up expecting to own their own home, but soaring house prices have made it harder for people to get into the market. Does that matter? Is home ownership all it's cracked up to be?

Syndicated column June 6 2006: Bigger and better houses distort numbers

Readers keep sending in thought-provoking letters about the shares v rental property debate. It's central to the question of how to invest long-term savings, so it's worth continuing to explore the issues.

Today, excerpts from two letters:

"Your reader who commented on comparisons between housing price indexes and share market indexes has overlooked many points. Sometimes very large amounts are spent on home improvements without being considered when calculating house price increases.

"With new houses, a trend for larger houses...

Syndicated column May 23 2006: Property backers underplay risk

Property backers seem to go in for hyperbole. Two examples from readers' letters:

* "Shares are not and have never been as lucrative as property.... We now know why the richest people in the world and in NZ are property investors."

* "The average person can quietly work themselves into a residential property portfolio worth several million dollars with a decade or two of judicious acquisitions. ...People putting a portion of their income aside to buy into share funds are left in the dust."

Syndicated column May 9 2006: Index distortion not what it seems

A reader's point about the ongoing shares v houses debate sounds fair enough.

"Your comparisons do not compare like with like," he writes, "because you are using an index for shares, which only covers some companies, whereas for housing, you are using the average over all houses."

Syndicated column April 25 2006: Shares easier than reader thinks

It's like a red rag to a bull. A paragraph in a reader's email started, "Without getting into the share v property argument..." But why not get into it? After all, it's at the very heart of most New Zealanders' thinking about long-term investment.

The reader, a mortgage broker, goes on to say, "I believe it is good for people to have a dabble in shares with spare cash but use property as their main retirement plan, even if they go hard out paying off just one rental property.

Holm Truths autumn 06

Stuff and happiness: Buying things you don't really need

Also in this issue: From the Mailbox - Should a young man buy himself a house?

NZ Herald March 18 2006

Q&As: Man panicked and bailed out of share fund. No!
Real Estate Institute denies that it's hard to buy a house in NZ.

NZ Herald February 4 2006

Q&As: Man who has made $3 million from shares.
How much risk for a 53-year-old?
How good is advice from banks?

NZ Herald January 21 2006

Q&As: Shares v term deposits - it depends how much time you have.
Short-of-cash millionaires should try to renegotiate their mortgage.
When is a 2% penalty not 2%?

Syndicated column January 17 2006: Readers rally to back houses

It always happens. Whenever I write about investing in houses and shares in the same column, people say I'm unfairly negative about houses.

In my final column last year, I wrote that the rise in house prices over the previous year was slower than the rise in: New Zealand shares, hedged overseas shares and unhedged overseas shares, all including dividends. That surprised me, and I thought it might surprise you.

NZ Herald December 17 2005

Q&As: Should newly separated woman buy a house or rent?
Our total tax rate depends on whether we spend or save.
End of year message.

Syndicated column December 13 2005: Can't see the forest for the houses? Also: Christmas shopping.

Quick question: Which of the following grew fastest in the last year: New Zealand house prices, New Zealand shares, hedged overseas shares (hedging removes the effects of foreign exchange movements), or unhedged overseas shares?

Surprise, surprise, it wasn't house prices. Bigger surprise still: house prices came last.

NZ Herald November 26 2005

Q&As: Woman in Australian shouldn't sell her house here.
Is the house price boom like the great tulip bulb bubble?
Couple disagree over rental property v shares.

NZ Herald November 19 2005

Q&As: How well do share funds perform?
Comparison of investment performances.

NZ Herald October 29 2005

Q&As: Should immigrant solo mother get into the housing market now?
What is an index fund?
How exchange traded funds work.

NZ Herald October 22 2005

Q&As: Several on how families are taxed.
Can property sellers and agents lie to buyers?
Protestor over tax on international shares gets stroppy.

Syndicated column October 18 2005: Home ownership not the only road to wealth

Shock, horror! Home ownership is falling and will continue to fall. But is that so bad?

NZ Herald August 13 2005

Q&As: Risky to buy shares while waiting to buy a house.
Is the gain on excess shares in an IPO taxable?
Rental property depepreciation and Inland Revenue.

NZ Herald August 6 2005

Q&As: 18-year-old should wait a bit before buying a house.
Saving for the grandchildren - how much risk is good?
Rental property depreciation risks.

NZ Herald July 9 2005

Q&As: Is geared rental property right for everyone?
Perhaps the woman last week should wait befoe buying a house.

NZ Herald July 2 2005

Q&As: Should woman buy a home now, despite Economist warnings?
A couple explores housing options.
House prices falling in Australia.

NZ Herald June 25 2005

Q&As: Should you sell your house and buy again after prices fall?
The best way to rebalance your investments after the markets put them out of balance.
How to measure inflation.

NZ Herald June 18 2005

Q&As: When does tax on capital gains apply to share investors?
When can share investors deduct newspapers and investment reports?
Are shops allowed to charge more if you use a Visa card?
The role of luck in house price rises.

NZ Herald June 11 2005

Q&AS: Paying extra for using a credit card.
Distortions when considering how good an investment your home is.
First home buyers should probably wait.

NZ Herald June 4 2005

Q&As: 2 on renting v home ownership - including the psychology of the choice.
The professor who set last week's question gives me a grade, and notes that house prices have fallen lots elsewhere.

Syndicated column May 31 2005: How KiwiSaver will work for you

How you might react to the KiwiSaver programme in the recent budget depends on your circumstances.

Under the programme, scheduled to start in April 2007, employed people, the self-employed or beneficiaries can contribute 4 or 8 per cent of their income to a saving fund.

NZ Herald May 28 2005

Q&A: Is home ownership always good?

NZ Herald April 16 2005

Q&As: Woman can get her dream property - if she makes some sacrifices.
What does finance company gearing mean?
Who hears a will being read?

Holm Truths autumn 05

Moving the goalposts: Working part-time in retirement makes a huge difference to how much you need to save

Also in this issue: From the Mailbox - Is home ownership so great?

NZ Herald March 26 2005

Q&As: Man in mid 50s can afford to drop out - but what about emotionally?
Is reader silly to stick with renting?

NZ Herald March 19 2005

Q&As: Tips for a 12-year-old on how to save.
A revolving credit mortgage might be just the thing.
One way to spot a leaky home.

NZ Herald March 5 2005

Q&As: How to invest a student loan, and SHOULD you?
Where can you get an apartment for $100,000?
Bonds may beat term deposits, even for the short term.

NZ Herald February 26 2005

Q&As: Should single Mum renovate, rent our her house and move elsewhere, or move to a cheaper house?
Share trader's early success won't last.

NZ Herald February 12 2005

Q&As: Should young person saving for a house buy now?
Where to invest while saving to buy a house.

Holm Truths summer 04-05

Scattering the seeds: By diversifying, you reduce risk but not returns

Also in this issue: From the Mailbox - Some people over-save for retirement

Holm Truths spring 04

Investor beware!: How to spot a rip-off or scam

Also in this issue: From the Mailbox - Plans for single mother of 41

Holm Truths summer 03-04

Time is Money: A basic principle that helps you understand investing

Also in this issue: Great Debate - Revolving credit v traditional mortgages

Holm Truths winter 02

Getting into gear: Borrowing to invest makes a good investment better and a bad investment worse

Also in this issue: Great Debate - Fixed v floating mortgages

Holm Truths summer 01-02

Pay yourself first: A way to make it easier to save

Also in this issue: Great Debate - Renting v home ownership