An Auckland first-home buyer scenario from economist Shamubeel Eaqub shows the renter ending up with $2.83m in investments vs the homeowner’s $2.1m house after 30 years. A $724k difference under current assumptions (3% house growth, 5% mortgage, investing the difference at 5.4%).
Would you still buy, or does this change how you see renting long-term?
A new Government report suggests that removing Auckland's 79 maunga viewshaft restrictions could lower house prices and encourage greater urban density. However, these viewshafts protect sight lines to volcanic cones that hold deep cultural significance for mana whenua and visual value for the city.
The report notes that a targeted approach, removing only the few most economically distortive viewshafts, could capture most of the financial benefits while leaving many sight lines untouched.
What approach do you think Auckland should take?
I am setting up this poll to get a feel for what tools everyone in New Zealand is actually using to track their money and budget. There are heaps of options out there, so it is helpful to see what works best for people in real life and help others in the group find something that fits their style.
At the peak, buying feels completely obvious. Prices are climbing, headlines are glowing, and FOMO takes over as everyone around you seems to be winning. During these times, risk becomes invisible, and investors convince themselves that there is no price too high to pay.
At the bottom, selling feels entirely necessary. Prices are crashing, headlines are grim, and capitulation sets in as the collective belief becomes that this is the end. True opportunity is invisible during a crash because it comes disguised as imminent danger. Panic drives investors to feel there is no price too low to exit.
The market does not defeat investors through sheer complexity. It defeats them by exploiting psychology, being most compelling when it is most dangerous, and most terrifying exactly when it is most opportune.
Because the crowd sets the market price, following them means you are guaranteed to only ever achieve the crowd's result. True investing is inherently a contrarian act. Disconnecting from the herd is deeply uncomfortable, but it is exactly how the best investors win.
When was the last time you went against the herd and did it pay off?