Where Is My Wealth?
I was reading a report today which highlight that “Wealth from housing has increased about $400bn in the past two years. Meanwhile, housing debt has increased to $325bn from $280bn pre-lockdown last year”. In summary, New Zealanders are wealthier $355bn from last 2 years (400-(325-280)=355). I encourage you to read this again!
We all know due to the Covid-19 pandemic the country border closed and this impacted tourism, in parallel Auckland is in lockdown for several months. New Zealand government made some financial decisions to survive in the last 2 years. Good or bad $355bn of wealth is distributed in New Zealand to help this country fight a pandemic. This means every New Zealander should earn 71k of wealth ($355bn/5m person=$71K). At the time of the 2018 census, there were over 1.8 million dwellings in Aotearoa New Zealand. Of these, just under 1.7 million were privately occupied, housing around 4.3 million people. This means each property on average increases 200K (355bn/1.8m property=197K). If you are following the property market you know this is right in general. Then:
- If you are a family of 3 and your wealth didn’t increase by 210K then you missed the opportunity.
- If you are a homeowner and your wealth increase by less than 200K then you … .
- If you missed the opportunity to take part in this wealth distribution, somebody else took your potential wealth.
- And finally, is it the right time to invest in property now? NO! (let’s have 30 minutes chat to tell you why)
Then what is a recommendation? Invest in your knowledge, have a plan, buy the right property in the right area to be part of the next round of wealth distribution. If you don’t know how to start contact me.