It’s Time For Kiwis To End Their Love Affair With Residential Property

The eroding viability of residential property investment is a good reason to support a new debt-free commercial property venture aiming to keep Kiwi dollars in New Zealand.

Company director at Mates Invest, Ryan Impson, says timing is everything, and increasing financial uncertainty is a massive opportunity for Kiwis to pivot to a more simplified investment strategy.

While some in the finance industry warn mum-and-dad investors that the national preoccupation with residential property investment dangerously skews the economy, few offer a viable alternative to the traditional 'rental property’ in a way where the investor does not have to put the family home at risk.

"If the RBNZ keeps its promise and maintains the OCR at current levels until September 2024, there is a narrow window of opportunity to acquire significant commercial property investment for the next 12 months.”

Ryan says that legislative pressure, falling property prices and the erosion of tax advantages make residential property investment unsustainable for many.

"However, most New Zealanders need to learn that there are simply better out there, even if they are harder to access. With a simplified alternative, the more people we educate, the better it is for everybody."

Mates Invest is a New Zealand-owned and operated model that will actively acquire and manage commercial properties, offering Kiwis the chance to invest in property that supports their community.

Regarding residential property investment for your average Kiwi, Mates Invest simply suggests it's best to pivot when you’re in control.

“I think the investment culture in New Zealand is changing, with people now looking for more income rather than speculative capital gain, which is only accessible by further borrowing or downsizing.

He offers the following considerations for people who want to explore other investment opportunities in the market.

1. Explore alternatives

"At the moment, our economy is dominated by the banks which reward people who want to get more into debt, but there are options to achieve similar or better returns without the debt but with active management."

2. Invest in commercial

Commercial tenants are reliable for longer durations, providing better returns and less administration.

3. Consider income options that don't require debt

“Debt is not cool in retirement. People should be more concerned with long-term consistent returns rather than fluctuating investments due to fluctuating finance cycles from the banking sector. Being debt free is one less consideration.”

ABOUT

Mates Invest is committed to providing its investors with optimised asset management and risk control. Governed by independent professionals, the company ensures investors' best interests and business continuity. All investments are managed through trust accounts with corporate lawyers, with funds directly invested in property ownership entities. A comprehensive company constitution outlines the rights, powers, and duties of Mates Invest, the board, directors, and investors.

Backed by a team of trusted advisors, including prominent real estate professionals, the company upholds the highest standards of governance and compliance. The forecast rate of return relies on commercial property rentals, rental growth, refurbishment, and capital appreciation. Although returns cannot be guaranteed, Mates Invest offers first security against assets held in the fund, avoiding reliance on bank debt. Gross returns are paid at the end of the investment term, less tax paid in advance, with cash income distributions available after three years. Early withdrawal rates may apply, and the opportunity is currently available to wholesale investors with a minimum investment of $100,000.

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