RSS Feed

Ryan Smuts: Why it is never too late to start investing in property

Friday, February 08, 2019



Starting early definitely helps – when it comes to any kind of investing. Time is an investor’s best friend. Remember what Einstein said about compounding?

That being said, it’s never too late to start today. There is a Chinese Proverb that says “The best time to plant a tree was 20 years ago. The second best time is now.” Investing is much the same. Focussing on what you didn’t do when you possibly could have does nothing to improve your situation. The most important thing is to focus on the ‘now’.

There a several key reasons for this:

  1. At the moment in many regions (particularly Auckland), it is more a buyers’ market than a sellers’ market. This means that there are more opportunities to be had. You are in the position to negotiate hard with the vendor and buy at a discount, which you’d find is extremely important in the property game when it comes to accessing equity and recycling your deposit. The key to any investment is understanding you make your money when you buy.
  2. Real estate income can supplement your existing income. Even if it is small at first, additional income towards your bills, or even towards that next vacation definitely is both helpful and motivating. Retirement should also be a focus, realising that one day when you stop working, you are going to need some level of income to continue your current lifestyle.
  3. It is a relatively simple process and not overly time intensive, particularly if you have the right team around you. This means you can get into the real estate investment industry part-time, perhaps after hours. A past mentor once told me you can spend your days making a living, and spend your nights building a fortune.
  4. Your investment may be in the form of an owner-occupied property. Security is important, particularly in later years when it comes to retirement. Financial burdens can often be heavy, and dealing with this at a point in your life when your ‘earned’ income may decrease, you want to ensure that these bases are covered. Furthermore, emotional stability is earned by owning the home you live in – while you may still have a mortgage to pay in retirement (which depending on how aggressively you repaid your loan may be lower than what rent payments would be), the benefit is that your rents won’t be lifted and your landlord can’t request you to move when they decide to.

While I definitely am a property enthusiast as an investment vehicle, it definitely does provide many benefits that other investment cannot guarantee, and due to this are a great investment class in my opinion. That being said, you need to pick the basket wisely that you lay your eggs into, so be certain to do your due diligence before investing your cash into anything.



Ryan Smuts 

Ryan is a Key Accounts Manager at Kris Pedersen Mortgages and Insurance. Ryan can be reached on 021 193 9333 or [email protected]






Recent Posts


ocr lockdown Case study positive cash flow management Market report CCC worksafe heat pump Editor's Choice data security Property (Relationships) Act wealth creation will extractor fan mortgage negotiation tenant ird quiet enjoyment mindset finance first home buying subdivision heating interest rates inflation television commerce commission covid-19 bond form recycling equity twg report p lab legal termination property value anz short term rental shortland chartered accountants HSWA smoke alarm bond debt enforcement advice Q&A market clnz house prices ventilation short-term rental insulation bankruptcy re agent ask an expert daikin relationship education asbestos tax boarding house DTI property cycle buying rules Tribunal case study interest deductibility property TCIT rent airbnb water bill letting fee rental wof HHS interest only government RTAA 2019 khh LIM development rent control Must know personal growth insurance tenancy services inspection meth contamination buying holiday house Gluckman productivity letting robert kiyosaki cash-flow warren buffett rtaa2020 Sponsored post Kris Pedersen Mortgages and Insurance beginner investor renovation debt to income property maintenance kiwibuild apia cat meth watercare Level 4 CoreLogic lvr speculator trespass Guest blog Landlording financial advisers act early termination Question and answer structure scotney williams legal cost travel bubble Keith Hay Homes warm up new zealand gluckman report retaliatory notice housing package rent increase ring-fencing skill shortage privacy Investment tip trust barfoot and thompson Zodiak Management rent arrears maintenance housing affordability sale and purchase opes partners heater sublease anti-social behaviour return rta reform market rent income capital gain banking cgt sale and purchas Investor story How to trademe business tenancy tribunal buyer's agent brightline property apprentice investor minor dwelling Holler reserve bank yield rental market auckland Standards New Zealand equity fixed-term tenancy landlord building housing bubble Jeff Bezos auckland council interest limitation bad tenant partners HHGA initio Must knows off the plan principal and interest election2020 winz RBNZ property management tenancy issues rta unitary plan parry v inglis election 2017 damage shower dome nzpif investment strategy wins


Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo