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Nagging voices of success; Dodging financial bullets; Affordability; Passionate about your work; Infrastructure investments

Nagging voices of success; Dodging financial bullets; Affordability; Passionate about your work; Infrastructure investments

By Amanda Morrall

1) Housing affordability

As regular readers will know, I have mused for some time now about moving to Gisborne, a place where buying a house actually makes good financial sense. Because buying a house is more emotionally driven than economic, affordability issues can get pushed to the side. Not by me of course. I met someone just yesterday who shared with me their plans to move to Gisborne, where they've bought a dream house the mortgage payments of which will amount to $100 a week. (They put down a 50% deposit) I have cajoled this person into sharing their story in a few weeks, so stay tuned. It's a great tale.

And for our friends living across the pond, here's some recent research (as published in the Sydney Morning Herald) on areas of affordability in some of the larger Australian cities. And once again, here's a link to our data set showing a region by region break down of where it makes better sense to buy than rent.

2) Passion

Zipcar, if you haven't heard of it, is the world's largest car sharing club. No presence yet in New  Zealand but is active in the U.S., Canada and the U.K. It's a brilliant concept. Zipcar's CEO Scott Griffith, in the following Wall Street Journal article talks work-life balance, technology and why if you are not loving your work, why you should move on.

3) Dodged a bullet

In my upcoming book (due out in February) I have a chapter on financial vampires. There are many types of financial vampires so it's a long chapter as you can imagine. Financially ruinous partners are part of the vampire family.

May this guest blog via getrichslowly.org, "How I dodged a financial bullet" serve as a warning to those of you with financially reckless partners.

4) Nagging voices of success

And I thought it was just me plagued by nagging voices.

Here's Mr.Money Moustache on why nagging voices in your head are a) pretty common and b) not a sign of insanity but rather success. Speaking of success, here's wishing Mr.Moustache, who boasts one of the most successful independent personal finance blogs in the U.S., well on his plans to use future profits to do good and help folks out.

5) Infrastructure

John Collett, writing for the Sydney Morning Herald, discusses the merits of stocking up on infrastructure type investments as a source of inflation adjusted steady fixed income returns for retirement.

Interestingly enough, the NZ Super fund is making a bid for London's Stansted airport, the U.K.'s third busiest airport which is going on the auction block under pressure from the British Competition Commission. (See National Business Review story here for more). Infrastructure investments form a large part of the NZ Super fund portfolio.

To read other Take Fives by Amanda Morrall click here. You can also follow Amanda on Twitter @amandamorrall

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11 Comments

Houses in Gisborne (or Wairoa or Waipuk etc):  You may actually need a job.  Ok, there's telecommuting but ...

Then you lose out on capital growth compared to a metropolitan area.

Even in Gisborne, nice houses near the sea are quite expensive ....

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poverty bay i think the name says it all.

look how many local children get their schooling away from gisborne.

cheap houses yes.

crime free. not by a long shot worse than the rest of nz

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#1 always a dangerous move quoting an article in the SMH. It has about as much financial credibility as The Sun in the UK. Well known as a rag for property spruikers. The suburbs they quote are the kind of places I wouldn't want my dog to live in, let alone consider moving to. I'd rather live in Hamilton.





We were thinking of moving from Haymarket to Pyrmont and have been looking at apartments. Our budget of up to AU$1200/week (for 3 of us - about right for inner Sydney) has us viewing apartments that would cost up to AU$2,000,000 to buy, so the disconnect between purchase and renting in any civilised part of Sydney is massive. We currently pay $780/week rent for an apartment that sell for $750,000. Work that out at 6% interest, $10,000 pa bodycorp and rates, and it's less than a 3% return. I'd never buy in Sydney.





And once you go west past Glebe/Pyrmont you may as well be in Paramatta - it's just a horrible bogan sprawl.





Gisborne - looked at it myself. Great spot, shame about the lack of work, and the small-town NZ drawback factor. But you can afford to live pretty well beachfront for the same price as a half decent house in central Auckland.

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Thanks for that Stan. Didn't realise the SMH had that poor a reputation.

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MacroBusiness are even more scathing than I am. SMH are shocking spruikers when it comes to property. None of their lifestyle articles are not to be taken seriously (and include such greats as 'a MacDonalds burger is as healthy as a bowl of muesli' and other totally apalling advice on weight management and health) either.

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Technically, all that established or employed writers need is connection to the internet, something which I believe Gisborne does offer, along with all cities featured in this slideshow

 

As an aside, I have spent quite a bit of time in Detroit, an interesting place to say the least. Yes, lots of it is grim, but despite that, there are some unbelievably pretty areas, which can only be possible when in a city with much history and dare I say it, a heyday in the past. Interestingly, in cities like this, the inner city areas are those with the most impressive mansions, homesteads, merchants houses and are dirt cheap... That they are dirt cheap with white elephant status because of the same reason places in AKL are being elevated to million dollar status is interesting indeed.

 

It's just so hard to get on board with Olly and spruikers when you know what AKL prices will buy elsewhere.

 

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Cheers. Portland homes cute as a button. Not a bad place to live either.

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Oregon?

In which case, yes....one of my top five places.

regards

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"If farming workers left in droves for inflated wages in the city, the economy could take a large, drawn-out hit. "

 

http://www.stuff.co.nz/the-press/business/7724049/Fears-farm-workers-may-quit-to-join-rebuild

Oops...quick Tweak, it's time for another law...all farm workers are confined to be farm workers...that should do the trick.

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comment reposted where it was supposed to be above as a reply to Amanda.







 

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Hi Amanda, as a kiwi living in West Oz for the last 20 years I'm planning on buying a place back in NZ next year, my "summer pad"? I have considered Gisborne as I'm passionate about surfing and like the mellow vibe of the town. Two main drawbacks for re-locating to Gissy as I see it; the distance/isolation, its a long drive to an international airport or a larger metro area for city things and its longish winter, not so north facing, most homes reasonably exposed to cold southerlies. My current choice is Raglan, for the surf, funky small town feel but proximity to Hamilton 30 minutes away and the dreaded Akld one and half hours drive, on a good day! holds lots of appeal as does the ability to be on the east coast inside 2 hours.

Cheers

Hal 

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