February 28, 2025 • 41 mins
A recent report found that women lag behind men in investment property ownership, despite a fairly even result for owner-occupied homes.
Nichole Lewis joins to discuss why the numbers are so off, and how you can start from zero.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks
EDB take them Home.
Speaker 2 (00:15):
When doing you.
Speaker 1 (00:19):
A been?
Speaker 2 (00:19):
Donau start and.
Speaker 1 (00:34):
When you're.
Speaker 2 (00:37):
When you're you're with the One Roof radio show. Good
to have you with us here on the Weekend Collective.
I'm Francisca bud Can, filling in for Tim. He'll be
(00:58):
back with you tomorrow. It is seven past four and
I'm delighted to have as our guest this hour Nicole
Lewe who was a property investor. Welcome than having me.
Good to have you with us. Hey, I was wondering
interestingly considering that we were having you on today. Just
this week a new report came out that found that
(01:20):
while women come, you know, doing very well in comparisons
to men, when it comes to home ownership homes we
own and live in, they're falling behind an investment property.
And I know that you were probably an investment property
when there weren't a lot of women around. Not that
I want to aid you or anything or make you
feel like you've been doing this forever, but what do
(01:44):
you think is stopping women from buying investment property?
Speaker 3 (01:47):
You know?
Speaker 4 (01:48):
It actually is a very good question, and you're right.
Years ago, I would have been like a lot of
organizations I went with with property. I was the only
woman involved in property. The others either the beautiful ones
in their bikini thing come and look at this, or
you know, accountants behind the scenes. But over the years
you have got more and more women involved. And what
(02:12):
stops them more than men. It's a really good question,
and we can be a little bit controversial. I suppose
when we think about pay parity. You know, men still
own more, so they've got more borrowing power from a bank.
But potentially the other thing that comes into it to
be even more controversial is education. I don't mean formal education,
(02:33):
I mean informal education. Because anyone can do property. You
don't need money. You do it with no money. However,
you've got to you've got to learn. So statistically speaking,
as CEO, for example, we'll read something like twenty five
books a year, whereas the average person might read two.
(02:56):
And because we have more men in C suite type jobs,
therefore the numbers tell us more of what I call
the informal education, which is often around building wealth, building
security and property falls into that, and.
Speaker 2 (03:14):
With knowledge comes confidence and since and off we go
that can't hundred now look at this out. We'd love
to hear from you as well. Oh, eight hundred and
eighty ten eighty is in number to call and you
can text on ninety two ninety two if you've got
a question that you'd like to ask Nicole. Or maybe
you are a woman, a woman investor and you know
(03:36):
you went on quite a journey to get there. We'd
love to hear your story as well. We'd love to
hear from you if you you know, you can explain
to us what the obstacles. It's something you'd really like
to get into, but you know you can explain some
of those obstacles to us. So where would you start then?
If you were thinking to yourself, I mean, okay, so
you might own a property that you live in. How
(04:00):
what at what stage of that ownership can you go Okay,
I'm ready now to look at an investment property.
Speaker 4 (04:07):
Okay, So, first of all, as the way you look
at property, property is a strategy in New Zealand, you know,
our key, we mindset is that we get up, we
grow our and we get our family home and we
go for our first home ownership. However, that's only one
avenue to property and that and with a home, your
family home, comes a different way of thinking. You know,
it's an emotional purchase. However, property has three other significant
(04:32):
avenues that you can take before you even buy your
family home. It's just a completely different way of thinking.
So really, the very very first thing to do is
educate yourself, and you can do that really simply. You know,
you can read some books, you can join a property
investment group, either online or in person, and you can
talk to really successful investors that have made it, and
(04:54):
you learn. You learn that there's so much more to
property and so many more strategies than just owning your
own home, and anyone can do it, regardless of wh
you have money or not.
Speaker 2 (05:06):
Okay, so there shouldn't be anything holding us.
Speaker 4 (05:08):
Back, nothing at all except our own determination basically.
Speaker 2 (05:12):
And maybe just a little bit of the gender wage
gap to a degree.
Speaker 4 (05:16):
You know, the gender wage get will come into it
when you want to buy your family home. But if
you're going to go and do a no money deal,
gender's got nothing to do with it. And if you're
going to do a no money deal to buy an
investment property, ginger's got nothing to do with it. So again,
it's just a case of let's teach ourselves how.
Speaker 3 (05:32):
To do it.
Speaker 2 (05:33):
Okay, So that could be that that's what's holding women back.
Maybe just that probably finding the time to go and
you know, gain that knowledge and then take that step.
Speaker 4 (05:45):
Correct.
Speaker 2 (05:45):
Can it be scary though? I mean I think it
would be quite scary to be doing something on your
own as well and to bear all the responsibility of
it and to take on that risk totally. Totally.
Speaker 4 (05:56):
But I think that goes both ways. Like you know,
both male and female. You know a lot of my clients,
I've got both male and female, and they all see
a similar sort of risks. But knowledge de risks. So
once again it's it is a case of learning. But
I think you're right with time. I mean, women tend
to do a lot of extra things outside of work
that takes up their time. And but that said, it's
(06:20):
prioritizing how we want to spend our time. I say
to my clients, you know, if you've got ten minutes
a day that you can spend doing property, that'll get
you there and we can all find that.
Speaker 2 (06:28):
Were you surprised by core logics research that was released
this week that shows that soul mail property investors still
out number solo women.
Speaker 4 (06:38):
Was I really no, no, because I see it when
I go to different forums. There are more men there
than women. I mean there's there's woman, it's not like
there's none, and it's been growing over the years, but
they're still outnumbered.
Speaker 2 (06:53):
Because interestingly, when it comes to owner occupied properties, twenty
three point one percent owned only by women, twenty point
nine percent only by men, and fifty percent joined a
percent jointly owned. So actually women, you know, sort of
do better than men in that particular category. So we
are buying homes, we actually are knowledgeable about property, yes,
(07:21):
but there's obviously a bit of a gap between you know,
buying your own hot buying something.
Speaker 3 (07:26):
You know that.
Speaker 2 (07:28):
What is that gap?
Speaker 4 (07:29):
It's the way you think about property. So if you
look at property in the four different quadrants, Quadrant one
is your family home and that's, like I said before,
it's emotional, whereas quadrant four, which is your investment property,
it's strategic. Can you think of it as a business
and you should be looking at purchasing an investment property
based solely on the numbers, nothing to do with the
(07:51):
area that the house is in, nothing to do with
what the house actually looks like it's all just about
the actual numbers. And that's something very very different to
get your head around. And then HUDREDNT three is active income,
like how to use property to make money to buy property,
(08:13):
and that's something you really need someone to teach you,
will show you so that you can get it right,
because you don't want to make a mistaken properly right.
I've done that. I'm good at that.
Speaker 2 (08:23):
It's another way of learning.
Speaker 4 (08:26):
Mistakes our opportunities to learn. For sure.
Speaker 2 (08:28):
These are the things we tell ourselves. Somebody texts to say,
David texts to say, I'm mean more adventurous and willing
to jump in and start. Is there something to that?
I think so yes.
Speaker 4 (08:38):
I mean I do have a lot of couples. And
the man will say, oh, my wife's not keen, or
my wife thinks it's risky. It's like, yeah, so there
could well be something in that. Not that all women
are not advantageous, a lot of them are, but that
could be a very valid point.
Speaker 2 (08:53):
I have another text here, I've got twenty five thousand.
Speaker 5 (08:57):
Can I do it?
Speaker 2 (08:57):
How do I get into the property investment market?
Speaker 4 (09:00):
Yes, you certainly can. So you wouldn't be able to
go and buy a property outright with it deposit, you know,
quite that small. But you can certainly go and start
by using property to make money, so you double your money,
double your money again, and then where you go.
Speaker 2 (09:16):
You make it sound so simple. Let's tell you to
boom someone to to say, a lot of young men
have all gone into a non crypto these days.
Speaker 4 (09:27):
Oh look, that's something I did attempt to learn, and
when I looked into it a few years ago, basically
I said, just put it aside a proportion of money
you're prepared to lose. And I suppose it's anything. It's
like crypto, it's like she is. You hear the stories
of those that got it right and they made a fortune,
and I don't know whether that's more fluke.
Speaker 2 (09:49):
Just going back to what you said before about you've
made mistakes. Can I ask about what those mistakes were
so that we can all learn from them. Have we
got more than an hour?
Speaker 5 (10:00):
Look?
Speaker 4 (10:01):
Basically, let's sum it up with my sort of five
biggest mistakes. I suppose one would be listening to the
wrong people. So you've got to listen to people who
have the portfolios that you want, which is most When
I wrote a book right called property Quadrants, and in
that I say, list all the people that you talk
(10:22):
to about property. Now take out a highlighter and highlight
the ones that have got a portfolio that you aspire
to have. I on my list had none. I was
talking to all the wrong people. So you're telling you
teaching yourself the wrong thing. Two I leveraged far too much.
When the times are good, leverage is your friend. When
the times are bad, leverage is your enemy. Three I
(10:44):
had far too much bad debt. You know, we want
everything now rather than sort of doing a deal. Four
I didn't really know anything about what I call quadrant
three how to make money with no money, so it
didn't even really realize that was possible. And five I
had everything negatively geared, so I had to top up
(11:07):
my mortgages every month and again. When the bad times come,
like we saw not so long ago when interest rates
went up, or when the government introduced non deductibility something, we're.
Speaker 2 (11:16):
Like, oh what am I going to do?
Speaker 4 (11:17):
Because you can't magic money at a thin air. And
when the bad times come, the property market is decreases
and it's really had to sell or you sell it
a loss, So you get into that spiral.
Speaker 2 (11:28):
Would most investors initially be negatively geared if they pur
And so is there a is there a magic percentage
that yeah, formula that you come up with it this
is how exactly how much negatively geared you would be?
Speaker 3 (11:44):
Does that?
Speaker 5 (11:44):
Y know?
Speaker 3 (11:45):
That is?
Speaker 4 (11:45):
Look what people do is they go into what I
call quadrant to the mistake quadrant, and that they go
and buy a house similar but not quite as good
to their family home that they like, and therefore they
end up paying their own mortgage and then topping up
the mortgage on the other property. And then something goes wrong.
The tenant goes, oh we've got a boost pipe and
you're like, oh my god in these days and you've
(12:06):
got to fix it. Or healthy homes get introduced and
there's ten thousand dollars you need and you've just got
to keep coming up with this money. So is really
what you need to do is make our decision based
on the numbers. So why talk about four key steps
to having a property positive cash flow? And you can
you can buy one positive cash flow from day one,
and positive cash flow after you've had mortgage rate, insurance,
(12:27):
maintenance and property management fees to start with, you might
only get two dollars a week. Hey, but it's better
than negative two hundred. So you buy a multiple income
property and normal house won't do it. You've got to
have multiple incomes. You buy one that is in need
of cosmetic renovation, so you know, something that's got needs
(12:48):
paint to or carpet or something like that. You can
add value to it.
Speaker 2 (12:52):
But nothing's structural.
Speaker 4 (12:53):
Nothing structural, no, exactly right. The next thing is that
you want to try and look for something that has
future potential. Yep, not that you'll do that right now,
but we're buying them for the long term, so you
can quadruple your capital gain rather than just doubling it
with future potential with zoning or subdividing a multiple. That
(13:13):
could be the land just the land and location the land. Yeah,
Or if you're buying a multiple income property, like I
like blocks of three what do you mean?
Speaker 2 (13:21):
But okay, thank you, yep.
Speaker 4 (13:22):
Then I like three units on one title. So right
now you know, so you're paying less rates, insurance and
everything else. But later on down the track you can
subdivide and put three units on three titles. Then you
can sell them all individually and you get more because
you've got a bigger buy a pole, so future potential
things like that. And the other key thing is that
you buy your property at or under the current market,
(13:44):
so you're never going to go and pay silly top dollar.
You just keep an eye on the cycles of the
market and buy ad or under.
Speaker 2 (13:50):
So theoretically now is a good time.
Speaker 4 (13:52):
Now it is a brilliant time to buy. And in
my crystal ball, I think we're going to be rising
for the next two years and we're at the bottom
interest rates going down. Brilliant time to buy, and you
can still get good bargains.
Speaker 2 (14:05):
A weight one hundred and eighty to eighty is another
to call if you have a question for Nicole. Maybe
this is something that you were planning on doing, maybe
you have done it and you would like to share
a story. Most welcome to join the conversation. Love to
hear from you. This is all very good information. And
I just want to go back a little step to
how we may not have a lot of cash, and
(14:27):
we were talking about that person with that twenty five
thousand dollars just before, Yes, can you just talk me
through that a little bit more about where you start
and how you make this happen perfect?
Speaker 4 (14:38):
Okay. So now I've written another book called No Money Deals,
which launches next week. So No Money Deals how to
do property when you're stuck for cash, because men, I
get stuck for cash all the time.
Speaker 1 (14:50):
Right.
Speaker 2 (14:50):
I thought you were going to tell me just to
read the book, but too, you.
Speaker 4 (14:53):
Can, you can, you can. And it is a story
about Jesse and who I caught up yesterday. Now, Jesse
he had thirty four thousand dollars, so he'd managed to
save up neared thirty four and he came to me
and said the exact same thing. Can I buy property
with thirty four thousand? I said yes, let's first double it.
So what we did is we went out and bought
a property for him to flip. So what we had
(15:14):
to do in order to only use his thirty four
thousand was we had to find something that was under market.
We had to find something that we could get a
slightly long settlement on that we could have access to
renovate prior to settlement. And then we had to find
him a money partner. So we did all that and
then he managed to buy the property. Now, what you
(15:37):
had to and his stories all in there, all of
it exactly how he did it. But what you've got
to be careful for. I make it sound simple, I know,
but I've been doing it for twenty years. I'm always
very aware of the worst case scenario, and in the
book I actually have worst case scenario is he can't
sell it, and so therefore you have to settle. So
if you're going to settle, how do we do that?
(15:57):
So I got him to go to the bank beforehand
to make sure he could settle. Yes, he could if
he had the deposit, which of course he didn't. So
therefore what we do is we go to an asset
lender who lends him the seventy percent based on the
valuation after we've done it up, which was two hundred
and fifty thousand dollars more than what he'd paid for it.
And therefore his thirty five thousand was just enough.
Speaker 2 (16:22):
So was Jesse going to sell this house before he
actually so?
Speaker 4 (16:27):
The plan was he was going to be bought it. Yeah,
was got access to renovate it.
Speaker 2 (16:33):
Can you get that? You can get it?
Speaker 5 (16:35):
Yes?
Speaker 4 (16:35):
And it's very hard, right, but you can do it.
I've done it a number of times. You have to
put in a number of offers, you know, like property.
People say to me, is property easy? I think in
comparison to working forty hours in a job for twenty years,
thirty forty years, Yes.
Speaker 2 (16:51):
It is easy. Because actually, if you were selling it,
if you were the seller and someone wanted to access
it and start doing it up and then that fell through,
that that that's a loss to the buyer. I mean,
you just get it. It's nice, yeap, okay, So that
it's the benefit for the seller. It's not too scary
for the seller. Okay, that's I get that. But and
so when was he going then it was going to
settle or was he going to flick it before you.
Speaker 4 (17:12):
See, what we hoped to do was flick it in
steadle it contemporaneously. So we finished it put it on
the market. I can't remember the exact dates. So but
let's say we finished it on the first of March
and put it on the market and he had to
settle on the thirtieth of April. That's what we'd hoped,
was that you can find a buyer within that time
in stettle on the same day that would have been me.
Speaker 2 (17:33):
So he's settling the purchase well then selling it on immediately.
Speaker 4 (17:37):
We settle the purchase and the sale on the same day,
so therefore you don't have to put the money in. Yeah,
but if that doesn't happen, because that's your risk, how
can you settle it? And that's what you've got to
know before you start. Yeah, I already know this would
be far too stressful for me. But that's that's step two,
(17:58):
you know, like step one, he could have simply on
sold that to someone else and made maybe twenty K.
And but then that's not a bad amount of money.
Now you've only got twenty five K to start with.
Now you've got forty five Okay, you've got to pay
some tax of course, yes, And that's what we call
a no money deal. You just go and pass it
on to somebody else. And believe me, I've got people
(18:21):
all the time say can you please find a property?
Can you find a property? So we love when someone's
keen to do that.
Speaker 2 (18:29):
Fascinating Back in just one moment, Nicole Lewis, property Investor,
is my guest here on the one roof at radio show.
It is twenty five past four News Talks.
Speaker 4 (18:39):
I'd be you know.
Speaker 2 (18:49):
That this is the One Roof radio show. My guess
this hour is Nicole Lewis. You're most welcome to call.
I wait one hundred and eighty ten eighty if you'd
like to join the conversation. We're talking about property investment.
Or you can text ninety two ninety two and I've
got a really good text for you here, Nicole, here
is my mistake. The text reads that I'm trying to
(19:11):
get out of I bought a new build in twenty
twenty one for over a million. Now it's worth in
the low eight hundreds. I can't add value, and I
want to change to a place I can add value too,
with a higher yield in the same market. My new
build is currently for sale. Should I sell at a
loss and start again or should I hold and remove
it from sale? What would you do?
Speaker 5 (19:32):
Very good?
Speaker 4 (19:33):
It is a very good question. And you are not
the only person to have asked me that, so that
a lot of people are in the same boat. Okay,
I'm going to give you a two fold answer. One
is this is what I say to my mentoring clients.
I say what's your ten year plan? And people go, oh,
my gosh. And the reason I asked that is because
when it comes to property, you're either going for passive
income where you want to buy a set of units
(19:54):
to get a lot of income coming in, or you're
going for active income, where you want to go and
do a no money deal or a quick flip to
make a substantial sum of money. So you know, start
by thinking that.
Speaker 3 (20:05):
Now.
Speaker 4 (20:05):
The reason I say that is I'm not opposed to
taking a two hundred thousand dollar loss. I always say
take a loss early. Gosh, I've had a few losses
with a few extra zeros on that one, so you know,
I get that if it works into your plan. So
the good news is if you sold that for eight
hundred thousand, you could probably go and buy a block
of three units somewhere that'll bring you in twelve to
(20:27):
fifteen hundred dollars a week and it'll be totally cash
flow positive. So that would certainly help your passive income.
But the other option that you've got is you could
also dabble in doing a flip or a no money
deal or something like that and make the two hundred
thousand that you're going to lose as well, So you
could get your cake and eat it too. So one
(20:49):
of the sayings we say is if we know we're
going to lose in a deal, we say take a
loss quick because you can wait for the market to
go up to get your equity back, but then that
unit with all that cash flow is also going to
go up. So you know, ten year plan, you've got
to figure out what do you want. If the answer
is passive income, swap properties, but don't write off your
(21:12):
T hundred cake because you can make it back. Set
yourself a challenge.
Speaker 2 (21:16):
Thank you, Nicole, as someone just somebody else to say
amen to that, Nicole. My daughter brought two units for
a first home and rental on one just home and
rental on one title just before Christmas last year in
christ Jug fantastic only on one income.
Speaker 4 (21:34):
So there we go.
Speaker 2 (21:35):
Yeah, I'm very sensible. Yes, you should feel fixed about
that one day. That's very good. I have another text
here from somebody saying that process of getting approval to
close without having the full amount for a deposit, how
time consuming?
Speaker 3 (21:50):
Is there?
Speaker 4 (21:51):
Very good question. So there's three different types of lending, right,
so what most it was actually five, but I'm just
going to talk about three. What most of us know
is the bank we know, Okay, we've got to go
to the bank and we've got to go through their process.
That's great for your home or for your investment portfolio.
If you're going to do a quadrant three type deal,
(22:12):
you don't want to go to a bank. You want
to go to a second tier lender, a finance company
or someone like an UNTE or FMG, you know people
like that. Why is short term money? You only want
the money for two or three months. Banks don't want
to know about that, and so the lending process for
a second tier lender is much easier because they're more
interested in the deal. And the third option I'm going
(22:33):
to put on the table, as I said this five
two three is you can also go to an asset lender.
So this is what I did Togs. I said, here,
go go and meet Bryce, the asset lender that I
used before, and they will actually lend you money based
on the deal, so they're not worried about all your
financials and give them every single piece of paper in
a bit of DNA. They want to meet you, they
(22:54):
want to get to know you. They want to look
at your property, they want to know you know what
you're doing, and they want to look they've got to
get evaluation done obviously, and then they go, yep, here's
the money based on the asset and a short term
money three to four months, and it's a bit more expensive,
but it's basically done.
Speaker 2 (23:11):
Okay. So this person said, look, we've got a significant
amount we're going to pay off our mortgage when we're refixed.
Would we be more beneficial beneficial to spend that on
purchasing another property?
Speaker 3 (23:21):
Yeah?
Speaker 4 (23:21):
So money. Look, I'm going to be controversial. Money that
you pay off your mortgage is dead. It's dead money.
It's not working for you. I'm all about getting my
money to work hard for me, but I'm also about security.
So I totally understand when people go, I want to
pay off my mortgage because it's security is now we're
never going to lose that. However, so that it's the
dance because it's dead money, it's not working for you.
(23:43):
So therefore I say, what is working for you is
if you have the same money that you've got in
mortgage invested in other places that bring an income, you're
also achieving security. So I would say, yes, go and
invest that in something else that is all cash flow positive.
And also look at how can you double it. But
(24:05):
in the meantime you could park it. You know, you
could do an offset mortgage or something like that if
you want to. But once you pay that money off,
it also is no guarantee can get it back because
the bank might not lend. And interest rates are going down.
So you know, how's it working for you? For interest
rates are at ten percent? Different kettle of fish. Yeah,
but again you see, this is where I say, watch
a ten year plan because you have a mortgage paid off, right,
(24:29):
so you know, you do some spreadsheets if you have
ten years with two or three properties going up in
value and it's costing you nothing out of your pocket
because it pays for itself. Therefore, you know, look at
what you can have in ten years versus now. It's
often triple fony.
Speaker 2 (24:45):
I spoke to someone like you, Nicole Wan, you know,
thirty years ago. Oh me too, Devari, thank you for calling,
Welcome to the show.
Speaker 3 (24:55):
Good afternoon. Then, Hey, this is my first time I'm
calling on the radio station. But I always listen to
this station because they helped me, you know, stuff really
important in life and in New Zealand. But it's really
interesting to hear this program because I always loved to
listen to invest in the house because my dad used
(25:17):
to say to me, it's good to own a house
and I own a plant new car. So in that
medici he prought us I was twenty years old, and
then he put it together a plan for us to
come to PI house. Now he retired back to back
home to some more. Me and my two sisters were
(25:40):
own a house and now sisters moving out. She has
her own house being and now it's me and my wife.
I get married. Me and my wife is in title
of his house. We've been here for six twenty plus years.
But I was listening to and always interesting because I
want to have to build to come out with another
(26:03):
house on top from the US the Eco t what
I heard from from people. I just need to know
if be A bought for an a call to give
me a number or something to talk to contact her
and see if she can help me and my situation,
(26:23):
because you know it's I can't talk on the radio
with me.
Speaker 2 (26:27):
No, no, that's that's no, that's okay. Where is the
best place for people to get information about this or
find someone to help them all yourself?
Speaker 4 (26:36):
Yeah, No, that's a that's a really good question. I've
been more than happy to chat to you, so you can.
Also you can look me up on my website, which
is the propertylifestyle dot com, and it gives you a
link to my calendly. So I'm actually known as the
Queen of Property, which so if you put Queen of Property,
my calendly comes up, and you can just book a
call straight with me and then I will get on
(26:57):
the phone and we can just chat and I can
see how I can help you.
Speaker 2 (27:01):
Thank you for your call. O one hundred eighty eighty
is the number to call. You can text ninety two
ninety two. Got another one here for you. Nicole from
kirk fifty three years old. He's got two hundred and
ten thousand dollars left on his mortgage. He's bought a
door upper home and has almost finished the bathrooms, the kitchen,
et cetera. He's not going to have enough to do
(27:21):
the carpet and finish a few jobs. Should he add
twenty thousand to the mortgage?
Speaker 4 (27:26):
Is is he planning to sell it straight away? Because
if he is, what you can do is you can
actually just go and put the carpet on your queue
card or something like that. So I use carpet cart
in Henderson, if them in Auckland, and they usually do
a deal you can do like thirty months or something,
no payments, no interest for your carpet. So I would
go and do that because that costs you nothing, and
(27:48):
then buy then it would be sold and you just
pay that back no interest. I think it's about a
thirty five dollar fee, and that's a really good way
if you're doing it, if you're going to sell it
straight away, if you're going to sell it, if you're
going to keep it, well, then that's a different kettle
of fish. But there's just another way of doing it
without borrowing that little bit of extra that you're short on.
There we go.
Speaker 2 (28:07):
I hope that helps Kirk. Somebody has mentioned here I
can't quite work out the text, to be honest with you,
but just talking about would you buy a Body corporate townhouse?
Speaker 4 (28:18):
No, okay, I can go into detail as to why
go from it, So briefly, I've been there, done that
big mistake, you know, going of mistakes, I really am.
And the reason is twofold. One is you've got no
control over the Body corporate going up, which it does.
And secondly, you've got no control over what the Body
Corp chooses to upgrade. So I've had people lose a
(28:40):
house because they've chosen to upgrade things. Then they said, hey,
we're short, please everyone put in one hundred thousand, and
this person didn't have it, had to sell the house.
And you can get all sorts of regulations. You've got
to upgrade your lift because of the fire escape and
all those sorts of things. I have done it, and
would I do it?
Speaker 3 (28:56):
No?
Speaker 2 (29:00):
I think the text was saying, would you buy a
body corporate townhouse? Or is it worth the owner getting
out of the Body corporate before selling it.
Speaker 4 (29:07):
Look, if it's just to live on, if it's your
own personal Q one family home, do what you like.
Ifing's wrong with having a Body corporate townhouse, I think
that's what you love because they come with a certain lifestyle.
Would I buy and as an investment?
Speaker 3 (29:20):
No?
Speaker 4 (29:20):
Because the numbers don't work as well.
Speaker 2 (29:22):
Oh e one hundred and eighty ten eighty is the
number to call. You can text on ninety two ninety two.
Nicole Lewis is our guest this hour. We're talking about
property investment. Back shortly the busies. It is seventeen to five.
(29:44):
Ye're with the One Roof radio show and Nicole Lewis,
property investor, is my guest. This our Alice, Welcome to
the show. Good afternoon.
Speaker 5 (29:53):
Oh my god, Nicole is so onto it. I'm looking
at retiring soon because I'm sixty five and a half
and I'm thinking of moving to Haste. I live in Wellington,
and yes we've dropped a hell of a lot of
money in house prices, but I'm looking at moving possibly
(30:14):
into a village. How do you think those rates.
Speaker 4 (30:21):
Well, that's a controversial question to ask me. So funny
my father in law is looking at villages as well.
So from a lifetile lifestyle perspective, I think they're fantastic
because there's so much companionship and activities and those sorts
of things that they're amazing. From an investment perspective, they're
terrible because you only get to get the right to occupy,
(30:43):
and then of course once you decide to sell or
leave that you only get your money back less the
percentage you've got to pay to refurbish it, which I
think is terrible from an investment perspective. But I think
when you get to the retirement phase. Let's face it,
lifestyle is the number one. You've got to enjoy the
rest of your life and live in the type of
(31:05):
moment that you're going to flourish in and als, what
are you going to do with your house in Wellington?
Speaker 5 (31:10):
Well, I've only got a townhouse that's just dropped two
hundred and seventy five thousand dollars because of the QVS.
I'll sell it because this I mean, I've lived in
Wellington all my life. I'm sixty five and a half
and yeah, I love Wellington, but I'd rather live in
(31:31):
the Hawk's Baby. But you've got good food and fruits
and lifestyle, so yeah, I wouldn't rent it out, but
I have got quite a large term deposit investment.
Speaker 2 (31:49):
Yeah.
Speaker 4 (31:50):
So banks typically don't like to lend to people when
they're over sixty. Don't say they don't do it. But
you've got an extra one hundred or so hopes to
jump through. It's very difficult. So therefore you mostly for retirement.
Villages need to pay cash for the property you're buying,
which means a lot of people need to sell their
(32:11):
house in order to do that. But if you don't
have to sell your house, then I mean by all means,
if you want to, you can. But then it's just
a case of thinking, how can you get the best
return on the capital you've got left. Getting rent in
is a good return. You might potentially still sell your
unit in Wellington and go and buy two or three
units somewhere else to still keep them. Hawks Bays a
(32:34):
great place, there's great units there to keep multiple income
coming in. You might just put it in the bank
and put it into an investment. Totally up to you.
Speaker 5 (32:43):
I think I'd like to try and find a tiny home.
Speaker 4 (32:47):
Yeah, that would be very smart. Yeah, then you've got
something else, because don't forget. Property makes us money in
two ways. One is, of course the cash flow coming in,
but the second is the equity that we get in
our capital gain, which doesn't happen under retirement.
Speaker 2 (33:01):
Village loving to talk to Ellis. Thank you for your call.
Rob takes to say, great show. I just sold a
house in Hamilton. What would you advise to buy with
seven hundred thousand as an investment?
Speaker 4 (33:13):
Seven hundred thousand as an investment? What I would do
as I'd go searching for my nice blocks of multiple units,
you'll get seven hundred thousand most of the places around
the country. We're usually around that, we're always under a mill.
You should be able to get your nice block of
three and you'd go maybe road a Ruer Dunedin to
(33:36):
Maru in v Cargo. We bought tokaroa sort of Yeah,
around those sorts of areas, you'll find them and yeah,
just keep searching.
Speaker 2 (33:49):
Would you be holding on to those for a long
period of time, would that be the aim there?
Speaker 1 (33:54):
Yeah?
Speaker 4 (33:54):
Yeah, correct. I mean the ideal is that when we're
increasing our investment portfolio, we want to hold them twenty
thirty years ideally, but life happens. You don't know what
might happen. So I look at it saying you two
things you're going to get his cash flow and capital growth.
A lot of people will come to me and say
I want capital growth, and I go why because it's
(34:14):
only any use to you if you borrow against it
or sell it. And then when people think about that,
they go, oh, well, maybe I want cash flow because
your cash flow property is what gets you through that.
It's your security, and don't forget those properties go up
to Either way you get capital growth.
Speaker 2 (34:29):
Tina joins us. Now, good afternoon, Tina, Hi.
Speaker 6 (34:32):
Hi, how are you. I just have a question in
regards to my dad. We've just had a little bit
of a meeting this morning with him. He's got a
freehold house which is probably worth probably about nine hundred
to a million, and he wants to free up some money.
But he's on attention, you know, so he can just
do a few things on his welllictedly, he wants to
(34:53):
get a new car and just a few bits and pieces,
is any way, I mean, what can you do? I
mean we looked at the heart We were discussing the
Heartland today, but we're not too sure whether that's going
to be the right course for us.
Speaker 4 (35:06):
Oh is that one of the reverse mortgages?
Speaker 3 (35:08):
Yeah?
Speaker 4 (35:11):
Yeah, see I don't I mean much as I like Hartley,
I don't like reverse mortgages so much because they are
very good for the bank and not so great for
your dad.
Speaker 6 (35:21):
Yeah, that's what we sort of discussed this morning. But
I mean he wants he wants a say in his
own home, which is fair and ass yes it is,
but all his money is in that home. Yeah, and
he's on a pension.
Speaker 4 (35:34):
I would do something way outside the box, and you'd
have to get expert advice. On how to do it.
I would use that equity to do a property deal
that would go and make him as fifty sixty seventy
thousand dollars he wants. He's got to pay your tax
and then he's got his cash leftover, he's got his
home leftover, he's got no mortgages. So he would haply
be like an investor or a silent partner or something
(35:55):
like that that for people that know what they do. Look,
I do do that type of thing. So I think
maybe get in touch, will have a chat and I
can point you and what to look for and what
not to look for with something like that.
Speaker 1 (36:08):
Yeah.
Speaker 4 (36:09):
Yeah, it's a long conversation, but we want to try
and do something that's the rest free. Yeah, you want
something risk free and reverse mortgages, then then they're not risky,
but they're not so good for your dad.
Speaker 3 (36:20):
Yeah.
Speaker 6 (36:21):
Okay, well I heard your or your details that you
go to the other guy, so I will look that
up and we'll be in contact.
Speaker 4 (36:28):
Yeah, okay, thanks for.
Speaker 2 (36:29):
Again, thanks for the call, Tina. The propertylifestyle dot Com
is what you're after if you missed it before. Another
text here quickly. I'm fifty eight years old. No mortgage.
House is worth nine hundred and fifty thousand. I've got
fifty thousand cash. Any ideas what I should do?
Speaker 4 (36:45):
Okay? Well, you see this is where I say, what's
your long term plan?
Speaker 2 (36:50):
You know, I was reading it and I was going, Gavin,
what's the plan? Where do you want to what are
you trying to?
Speaker 4 (36:55):
You know, where do you want to achieve?
Speaker 3 (36:56):
Yeah?
Speaker 4 (36:57):
Exactly, and then most people dance between. In my book,
I talk about, you know, as I say, quadrant four
where we're passive and come do we want to go
and buy some new or Quadrant three where it's active
income because we want to go and do a deal.
Much more about that in my new book because I
said no money deals where I go through exact stories
like Jesse's. But yeah, you've got to start with what
do you want to achieve? And then we can answer
(37:17):
the question in the right way for you.
Speaker 2 (37:19):
Nicole Lewis, it has been an absolute delight to have
you with us. Thank you so much for your hour today.
I think we've all learned an awful lot. Should we
do that we do Property of the week now if
we do it after Okay, thank you very much, Tyra.
I'm getting instructions, getting my head around things here. We're
going to take a quick break back with you in
just a moment, the.
Speaker 1 (37:39):
One roof Property of the Week on the Weekend Collective.
Speaker 2 (37:44):
So we were all admiring this house today in the
office at eighty six Goodland Drive, Dairy Flat and Rodney.
Four bedrooms, three bathrooms, it's got a four car garage,
but there's five other spots to packer cats. We're admiring
this really gorgeous property and then Nicole walks in and goes,
oh that's my house. I thought, Wow, who better to
(38:04):
sell property of the week. This looks absolutely beautiful. And
I know that you've had well you've got young adults
and things now, but I imagine this is an amazing
home for a family.
Speaker 4 (38:13):
Oh look, it is absolutely stunning. It's in the Goodland's
country estate, which is magic. The minute you drive through
the door and it's just people are fantastic. It's all
secure security cameras as you're driving and all sorts of
things like that. Absolutely magic. We spent hours in the
pool and the pool house and playing games and it's
on an acre. It's brilliant and.
Speaker 2 (38:33):
A gourmet kitchen. The kitchen looks amazing.
Speaker 3 (38:35):
You good.
Speaker 4 (38:36):
No, I don't like cooking, but you've got to have
two ovens and a scullery.
Speaker 3 (38:39):
Why not?
Speaker 2 (38:40):
So this place has absolutely everything. It looks absolutely stunning.
Speaker 4 (38:46):
Well are you leaving?
Speaker 2 (38:48):
Oh well yeah, it's a whole other story it is.
Speaker 4 (38:52):
We got another house and a bit more land for
the horses. Well there we go, but it is googeous.
Speaker 2 (38:57):
Go and have a peep for eighty six Goodland Drive
Dairy Flat, Rodney is the one roof property of the week.
Speaker 5 (39:03):
Now.
Speaker 2 (39:03):
I'd like to thank you once again for coming in
and joining us. This out for audio information and we
had a lot of texts saying that this has been
a very helpful hour for them. The propertylifestyle dot com
is where people find you, isn't it indeed? And what's
the name of the book? Out next week? Out next week.
Speaker 4 (39:19):
We've got no money deals how to buy property when
you're stuck for cash.
Speaker 2 (39:23):
Fantastic, So nice to meet you, Thank you for coming in.
Thanks coming up next hour. John Cowen is with us
for the Parents squad Rundown and look at this time
of the year, a lot of parents are saying goodbye
to their teenagers, possibly for the first time they're heading
off to university. Maybe they're going on in oe and
it can be quite a it can be quite a
(39:43):
difficult time for both parent and child. So we're going
to have a bit of a talk about how to
deal with this and how to deal with things when
maybe the teenager has headed off into a hall things
aren't going great. They're trying to settle in how can
we best support them, but also say suck it up,
you're there, you got to get on with it. So
I'm really looking forward to having job with us next
(40:04):
hour and the parent squad. It is four minutes to five.
You with news you big think you like that? I
think you light that.
Speaker 5 (40:13):
We're not glad that like that. Let me know.
Speaker 1 (41:08):
For more from the Weekend Collective, listen live to News
Talk ZEDB weekends from three pm, or follow the podcast
on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talks
EDB take them Home.
Speaker 2 (00:15):
When doing you.
Speaker 1 (00:19):
A been?
Speaker 2 (00:19):
Donau start and.
Speaker 1 (00:34):
When you're.
Speaker 2 (00:37):
When you're you're with the One Roof radio show. Good
to have you with us here on the Weekend Collective.
I'm Francisca bud Can, filling in for Tim. He'll be
(00:58):
back with you tomorrow. It is seven past four and
I'm delighted to have as our guest this hour Nicole
Lewe who was a property investor. Welcome than having me.
Good to have you with us. Hey, I was wondering
interestingly considering that we were having you on today. Just
this week a new report came out that found that
(01:20):
while women come, you know, doing very well in comparisons
to men, when it comes to home ownership homes we
own and live in, they're falling behind an investment property.
And I know that you were probably an investment property
when there weren't a lot of women around. Not that
I want to aid you or anything or make you
feel like you've been doing this forever, but what do
(01:44):
you think is stopping women from buying investment property?
Speaker 3 (01:47):
You know?
Speaker 4 (01:48):
It actually is a very good question, and you're right.
Years ago, I would have been like a lot of
organizations I went with with property. I was the only
woman involved in property. The others either the beautiful ones
in their bikini thing come and look at this, or
you know, accountants behind the scenes. But over the years
you have got more and more women involved. And what
(02:12):
stops them more than men. It's a really good question,
and we can be a little bit controversial. I suppose
when we think about pay parity. You know, men still
own more, so they've got more borrowing power from a bank.
But potentially the other thing that comes into it to
be even more controversial is education. I don't mean formal education,
(02:33):
I mean informal education. Because anyone can do property. You
don't need money. You do it with no money. However,
you've got to you've got to learn. So statistically speaking,
as CEO, for example, we'll read something like twenty five
books a year, whereas the average person might read two.
(02:56):
And because we have more men in C suite type jobs,
therefore the numbers tell us more of what I call
the informal education, which is often around building wealth, building
security and property falls into that, and.
Speaker 2 (03:14):
With knowledge comes confidence and since and off we go
that can't hundred now look at this out. We'd love
to hear from you as well. Oh, eight hundred and
eighty ten eighty is in number to call and you
can text on ninety two ninety two if you've got
a question that you'd like to ask Nicole. Or maybe
you are a woman, a woman investor and you know
(03:36):
you went on quite a journey to get there. We'd
love to hear your story as well. We'd love to
hear from you if you you know, you can explain
to us what the obstacles. It's something you'd really like
to get into, but you know you can explain some
of those obstacles to us. So where would you start then?
If you were thinking to yourself, I mean, okay, so
you might own a property that you live in. How
(04:00):
what at what stage of that ownership can you go Okay,
I'm ready now to look at an investment property.
Speaker 4 (04:07):
Okay, So, first of all, as the way you look
at property, property is a strategy in New Zealand, you know,
our key, we mindset is that we get up, we
grow our and we get our family home and we
go for our first home ownership. However, that's only one
avenue to property and that and with a home, your
family home, comes a different way of thinking. You know,
it's an emotional purchase. However, property has three other significant
(04:32):
avenues that you can take before you even buy your
family home. It's just a completely different way of thinking.
So really, the very very first thing to do is
educate yourself, and you can do that really simply. You know,
you can read some books, you can join a property
investment group, either online or in person, and you can
talk to really successful investors that have made it, and
(04:54):
you learn. You learn that there's so much more to
property and so many more strategies than just owning your
own home, and anyone can do it, regardless of wh
you have money or not.
Speaker 2 (05:06):
Okay, so there shouldn't be anything holding us.
Speaker 4 (05:08):
Back, nothing at all except our own determination basically.
Speaker 2 (05:12):
And maybe just a little bit of the gender wage
gap to a degree.
Speaker 4 (05:16):
You know, the gender wage get will come into it
when you want to buy your family home. But if
you're going to go and do a no money deal,
gender's got nothing to do with it. And if you're
going to do a no money deal to buy an
investment property, ginger's got nothing to do with it. So again,
it's just a case of let's teach ourselves how.
Speaker 3 (05:32):
To do it.
Speaker 2 (05:33):
Okay, So that could be that that's what's holding women back.
Maybe just that probably finding the time to go and
you know, gain that knowledge and then take that step.
Speaker 4 (05:45):
Correct.
Speaker 2 (05:45):
Can it be scary though? I mean I think it
would be quite scary to be doing something on your
own as well and to bear all the responsibility of
it and to take on that risk totally. Totally.
Speaker 4 (05:56):
But I think that goes both ways. Like you know,
both male and female. You know a lot of my clients,
I've got both male and female, and they all see
a similar sort of risks. But knowledge de risks. So
once again it's it is a case of learning. But
I think you're right with time. I mean, women tend
to do a lot of extra things outside of work
that takes up their time. And but that said, it's
(06:20):
prioritizing how we want to spend our time. I say
to my clients, you know, if you've got ten minutes
a day that you can spend doing property, that'll get
you there and we can all find that.
Speaker 2 (06:28):
Were you surprised by core logics research that was released
this week that shows that soul mail property investors still
out number solo women.
Speaker 4 (06:38):
Was I really no, no, because I see it when
I go to different forums. There are more men there
than women. I mean there's there's woman, it's not like
there's none, and it's been growing over the years, but
they're still outnumbered.
Speaker 2 (06:53):
Because interestingly, when it comes to owner occupied properties, twenty
three point one percent owned only by women, twenty point
nine percent only by men, and fifty percent joined a
percent jointly owned. So actually women, you know, sort of
do better than men in that particular category. So we
are buying homes, we actually are knowledgeable about property, yes,
(07:21):
but there's obviously a bit of a gap between you know,
buying your own hot buying something.
Speaker 3 (07:26):
You know that.
Speaker 2 (07:28):
What is that gap?
Speaker 4 (07:29):
It's the way you think about property. So if you
look at property in the four different quadrants, Quadrant one
is your family home and that's, like I said before,
it's emotional, whereas quadrant four, which is your investment property,
it's strategic. Can you think of it as a business
and you should be looking at purchasing an investment property
based solely on the numbers, nothing to do with the
(07:51):
area that the house is in, nothing to do with
what the house actually looks like it's all just about
the actual numbers. And that's something very very different to
get your head around. And then HUDREDNT three is active income,
like how to use property to make money to buy property,
(08:13):
and that's something you really need someone to teach you,
will show you so that you can get it right,
because you don't want to make a mistaken properly right.
I've done that. I'm good at that.
Speaker 2 (08:23):
It's another way of learning.
Speaker 4 (08:26):
Mistakes our opportunities to learn. For sure.
Speaker 2 (08:28):
These are the things we tell ourselves. Somebody texts to say,
David texts to say, I'm mean more adventurous and willing
to jump in and start. Is there something to that?
I think so yes.
Speaker 4 (08:38):
I mean I do have a lot of couples. And
the man will say, oh, my wife's not keen, or
my wife thinks it's risky. It's like, yeah, so there
could well be something in that. Not that all women
are not advantageous, a lot of them are, but that
could be a very valid point.
Speaker 2 (08:53):
I have another text here, I've got twenty five thousand.
Speaker 5 (08:57):
Can I do it?
Speaker 2 (08:57):
How do I get into the property investment market?
Speaker 4 (09:00):
Yes, you certainly can. So you wouldn't be able to
go and buy a property outright with it deposit, you know,
quite that small. But you can certainly go and start
by using property to make money, so you double your money,
double your money again, and then where you go.
Speaker 2 (09:16):
You make it sound so simple. Let's tell you to
boom someone to to say, a lot of young men
have all gone into a non crypto these days.
Speaker 4 (09:27):
Oh look, that's something I did attempt to learn, and
when I looked into it a few years ago, basically
I said, just put it aside a proportion of money
you're prepared to lose. And I suppose it's anything. It's
like crypto, it's like she is. You hear the stories
of those that got it right and they made a fortune,
and I don't know whether that's more fluke.
Speaker 2 (09:49):
Just going back to what you said before about you've
made mistakes. Can I ask about what those mistakes were
so that we can all learn from them. Have we
got more than an hour?
Speaker 5 (10:00):
Look?
Speaker 4 (10:01):
Basically, let's sum it up with my sort of five
biggest mistakes. I suppose one would be listening to the
wrong people. So you've got to listen to people who
have the portfolios that you want, which is most When
I wrote a book right called property Quadrants, and in
that I say, list all the people that you talk
(10:22):
to about property. Now take out a highlighter and highlight
the ones that have got a portfolio that you aspire
to have. I on my list had none. I was
talking to all the wrong people. So you're telling you
teaching yourself the wrong thing. Two I leveraged far too much.
When the times are good, leverage is your friend. When
the times are bad, leverage is your enemy. Three I
(10:44):
had far too much bad debt. You know, we want
everything now rather than sort of doing a deal. Four
I didn't really know anything about what I call quadrant
three how to make money with no money, so it
didn't even really realize that was possible. And five I
had everything negatively geared, so I had to top up
(11:07):
my mortgages every month and again. When the bad times come,
like we saw not so long ago when interest rates
went up, or when the government introduced non deductibility something, we're.
Speaker 2 (11:16):
Like, oh what am I going to do?
Speaker 4 (11:17):
Because you can't magic money at a thin air. And
when the bad times come, the property market is decreases
and it's really had to sell or you sell it
a loss, So you get into that spiral.
Speaker 2 (11:28):
Would most investors initially be negatively geared if they pur
And so is there a is there a magic percentage
that yeah, formula that you come up with it this
is how exactly how much negatively geared you would be?
Speaker 3 (11:44):
Does that?
Speaker 5 (11:44):
Y know?
Speaker 3 (11:45):
That is?
Speaker 4 (11:45):
Look what people do is they go into what I
call quadrant to the mistake quadrant, and that they go
and buy a house similar but not quite as good
to their family home that they like, and therefore they
end up paying their own mortgage and then topping up
the mortgage on the other property. And then something goes wrong.
The tenant goes, oh we've got a boost pipe and
you're like, oh my god in these days and you've
(12:06):
got to fix it. Or healthy homes get introduced and
there's ten thousand dollars you need and you've just got
to keep coming up with this money. So is really
what you need to do is make our decision based
on the numbers. So why talk about four key steps
to having a property positive cash flow? And you can
you can buy one positive cash flow from day one,
and positive cash flow after you've had mortgage rate, insurance,
(12:27):
maintenance and property management fees to start with, you might
only get two dollars a week. Hey, but it's better
than negative two hundred. So you buy a multiple income
property and normal house won't do it. You've got to
have multiple incomes. You buy one that is in need
of cosmetic renovation, so you know, something that's got needs
(12:48):
paint to or carpet or something like that. You can
add value to it.
Speaker 2 (12:52):
But nothing's structural.
Speaker 4 (12:53):
Nothing structural, no, exactly right. The next thing is that
you want to try and look for something that has
future potential. Yep, not that you'll do that right now,
but we're buying them for the long term, so you
can quadruple your capital gain rather than just doubling it
with future potential with zoning or subdividing a multiple. That
(13:13):
could be the land just the land and location the land. Yeah,
Or if you're buying a multiple income property, like I
like blocks of three what do you mean?
Speaker 2 (13:21):
But okay, thank you, yep.
Speaker 4 (13:22):
Then I like three units on one title. So right
now you know, so you're paying less rates, insurance and
everything else. But later on down the track you can
subdivide and put three units on three titles. Then you
can sell them all individually and you get more because
you've got a bigger buy a pole, so future potential
things like that. And the other key thing is that
you buy your property at or under the current market,
(13:44):
so you're never going to go and pay silly top dollar.
You just keep an eye on the cycles of the
market and buy ad or under.
Speaker 2 (13:50):
So theoretically now is a good time.
Speaker 4 (13:52):
Now it is a brilliant time to buy. And in
my crystal ball, I think we're going to be rising
for the next two years and we're at the bottom
interest rates going down. Brilliant time to buy, and you
can still get good bargains.
Speaker 2 (14:05):
A weight one hundred and eighty to eighty is another
to call if you have a question for Nicole. Maybe
this is something that you were planning on doing, maybe
you have done it and you would like to share
a story. Most welcome to join the conversation. Love to
hear from you. This is all very good information. And
I just want to go back a little step to
how we may not have a lot of cash, and
(14:27):
we were talking about that person with that twenty five
thousand dollars just before, Yes, can you just talk me
through that a little bit more about where you start
and how you make this happen perfect?
Speaker 4 (14:38):
Okay. So now I've written another book called No Money Deals,
which launches next week. So No Money Deals how to
do property when you're stuck for cash, because men, I
get stuck for cash all the time.
Speaker 1 (14:50):
Right.
Speaker 2 (14:50):
I thought you were going to tell me just to
read the book, but too, you.
Speaker 4 (14:53):
Can, you can, you can. And it is a story
about Jesse and who I caught up yesterday. Now, Jesse
he had thirty four thousand dollars, so he'd managed to
save up neared thirty four and he came to me
and said the exact same thing. Can I buy property
with thirty four thousand? I said yes, let's first double it.
So what we did is we went out and bought
a property for him to flip. So what we had
(15:14):
to do in order to only use his thirty four
thousand was we had to find something that was under market.
We had to find something that we could get a
slightly long settlement on that we could have access to
renovate prior to settlement. And then we had to find
him a money partner. So we did all that and
then he managed to buy the property. Now, what you
(15:37):
had to and his stories all in there, all of
it exactly how he did it. But what you've got
to be careful for. I make it sound simple, I know,
but I've been doing it for twenty years. I'm always
very aware of the worst case scenario, and in the
book I actually have worst case scenario is he can't
sell it, and so therefore you have to settle. So
if you're going to settle, how do we do that?
(15:57):
So I got him to go to the bank beforehand
to make sure he could settle. Yes, he could if
he had the deposit, which of course he didn't. So
therefore what we do is we go to an asset
lender who lends him the seventy percent based on the
valuation after we've done it up, which was two hundred
and fifty thousand dollars more than what he'd paid for it.
And therefore his thirty five thousand was just enough.
Speaker 2 (16:22):
So was Jesse going to sell this house before he
actually so?
Speaker 4 (16:27):
The plan was he was going to be bought it. Yeah,
was got access to renovate it.
Speaker 2 (16:33):
Can you get that? You can get it?
Speaker 5 (16:35):
Yes?
Speaker 4 (16:35):
And it's very hard, right, but you can do it.
I've done it a number of times. You have to
put in a number of offers, you know, like property.
People say to me, is property easy? I think in
comparison to working forty hours in a job for twenty years,
thirty forty years, Yes.
Speaker 2 (16:51):
It is easy. Because actually, if you were selling it,
if you were the seller and someone wanted to access
it and start doing it up and then that fell through,
that that that's a loss to the buyer. I mean,
you just get it. It's nice, yeap, okay, So that
it's the benefit for the seller. It's not too scary
for the seller. Okay, that's I get that. But and
so when was he going then it was going to
settle or was he going to flick it before you.
Speaker 4 (17:12):
See, what we hoped to do was flick it in
steadle it contemporaneously. So we finished it put it on
the market. I can't remember the exact dates. So but
let's say we finished it on the first of March
and put it on the market and he had to
settle on the thirtieth of April. That's what we'd hoped,
was that you can find a buyer within that time
in stettle on the same day that would have been me.
Speaker 2 (17:33):
So he's settling the purchase well then selling it on immediately.
Speaker 4 (17:37):
We settle the purchase and the sale on the same day,
so therefore you don't have to put the money in. Yeah,
but if that doesn't happen, because that's your risk, how
can you settle it? And that's what you've got to
know before you start. Yeah, I already know this would
be far too stressful for me. But that's that's step two,
(17:58):
you know, like step one, he could have simply on
sold that to someone else and made maybe twenty K.
And but then that's not a bad amount of money.
Now you've only got twenty five K to start with.
Now you've got forty five Okay, you've got to pay
some tax of course, yes, And that's what we call
a no money deal. You just go and pass it
on to somebody else. And believe me, I've got people
(18:21):
all the time say can you please find a property?
Can you find a property? So we love when someone's
keen to do that.
Speaker 2 (18:29):
Fascinating Back in just one moment, Nicole Lewis, property Investor,
is my guest here on the one roof at radio show.
It is twenty five past four News Talks.
Speaker 4 (18:39):
I'd be you know.
Speaker 2 (18:49):
That this is the One Roof radio show. My guess
this hour is Nicole Lewis. You're most welcome to call.
I wait one hundred and eighty ten eighty if you'd
like to join the conversation. We're talking about property investment.
Or you can text ninety two ninety two and I've
got a really good text for you here, Nicole, here
is my mistake. The text reads that I'm trying to
(19:11):
get out of I bought a new build in twenty
twenty one for over a million. Now it's worth in
the low eight hundreds. I can't add value, and I
want to change to a place I can add value too,
with a higher yield in the same market. My new
build is currently for sale. Should I sell at a
loss and start again or should I hold and remove
it from sale? What would you do?
Speaker 5 (19:32):
Very good?
Speaker 4 (19:33):
It is a very good question. And you are not
the only person to have asked me that, so that
a lot of people are in the same boat. Okay,
I'm going to give you a two fold answer. One
is this is what I say to my mentoring clients.
I say what's your ten year plan? And people go, oh,
my gosh. And the reason I asked that is because
when it comes to property, you're either going for passive
income where you want to buy a set of units
(19:54):
to get a lot of income coming in, or you're
going for active income, where you want to go and
do a no money deal or a quick flip to
make a substantial sum of money. So you know, start
by thinking that.
Speaker 3 (20:05):
Now.
Speaker 4 (20:05):
The reason I say that is I'm not opposed to
taking a two hundred thousand dollar loss. I always say
take a loss early. Gosh, I've had a few losses
with a few extra zeros on that one, so you know,
I get that if it works into your plan. So
the good news is if you sold that for eight
hundred thousand, you could probably go and buy a block
of three units somewhere that'll bring you in twelve to
(20:27):
fifteen hundred dollars a week and it'll be totally cash
flow positive. So that would certainly help your passive income.
But the other option that you've got is you could
also dabble in doing a flip or a no money
deal or something like that and make the two hundred
thousand that you're going to lose as well, So you
could get your cake and eat it too. So one
(20:49):
of the sayings we say is if we know we're
going to lose in a deal, we say take a
loss quick because you can wait for the market to
go up to get your equity back, but then that
unit with all that cash flow is also going to
go up. So you know, ten year plan, you've got
to figure out what do you want. If the answer
is passive income, swap properties, but don't write off your
(21:12):
T hundred cake because you can make it back. Set
yourself a challenge.
Speaker 2 (21:16):
Thank you, Nicole, as someone just somebody else to say
amen to that, Nicole. My daughter brought two units for
a first home and rental on one just home and
rental on one title just before Christmas last year in
christ Jug fantastic only on one income.
Speaker 4 (21:34):
So there we go.
Speaker 2 (21:35):
Yeah, I'm very sensible. Yes, you should feel fixed about
that one day. That's very good. I have another text
here from somebody saying that process of getting approval to
close without having the full amount for a deposit, how
time consuming?
Speaker 3 (21:50):
Is there?
Speaker 4 (21:51):
Very good question. So there's three different types of lending, right,
so what most it was actually five, but I'm just
going to talk about three. What most of us know
is the bank we know, Okay, we've got to go
to the bank and we've got to go through their process.
That's great for your home or for your investment portfolio.
If you're going to do a quadrant three type deal,
(22:12):
you don't want to go to a bank. You want
to go to a second tier lender, a finance company
or someone like an UNTE or FMG, you know people
like that. Why is short term money? You only want
the money for two or three months. Banks don't want
to know about that, and so the lending process for
a second tier lender is much easier because they're more
interested in the deal. And the third option I'm going
(22:33):
to put on the table, as I said this five
two three is you can also go to an asset lender.
So this is what I did Togs. I said, here,
go go and meet Bryce, the asset lender that I
used before, and they will actually lend you money based
on the deal, so they're not worried about all your
financials and give them every single piece of paper in
a bit of DNA. They want to meet you, they
(22:54):
want to get to know you. They want to look
at your property, they want to know you know what
you're doing, and they want to look they've got to
get evaluation done obviously, and then they go, yep, here's
the money based on the asset and a short term
money three to four months, and it's a bit more expensive,
but it's basically done.
Speaker 2 (23:11):
Okay. So this person said, look, we've got a significant
amount we're going to pay off our mortgage when we're refixed.
Would we be more beneficial beneficial to spend that on
purchasing another property?
Speaker 3 (23:21):
Yeah?
Speaker 4 (23:21):
So money. Look, I'm going to be controversial. Money that
you pay off your mortgage is dead. It's dead money.
It's not working for you. I'm all about getting my
money to work hard for me, but I'm also about security.
So I totally understand when people go, I want to
pay off my mortgage because it's security is now we're
never going to lose that. However, so that it's the
dance because it's dead money, it's not working for you.
(23:43):
So therefore I say, what is working for you is
if you have the same money that you've got in
mortgage invested in other places that bring an income, you're
also achieving security. So I would say, yes, go and
invest that in something else that is all cash flow positive.
And also look at how can you double it. But
(24:05):
in the meantime you could park it. You know, you
could do an offset mortgage or something like that if
you want to. But once you pay that money off,
it also is no guarantee can get it back because
the bank might not lend. And interest rates are going down.
So you know, how's it working for you? For interest
rates are at ten percent? Different kettle of fish. Yeah,
but again you see, this is where I say, watch
a ten year plan because you have a mortgage paid off, right,
(24:29):
so you know, you do some spreadsheets if you have
ten years with two or three properties going up in
value and it's costing you nothing out of your pocket
because it pays for itself. Therefore, you know, look at
what you can have in ten years versus now. It's
often triple fony.
Speaker 2 (24:45):
I spoke to someone like you, Nicole Wan, you know,
thirty years ago. Oh me too, Devari, thank you for calling,
Welcome to the show.
Speaker 3 (24:55):
Good afternoon. Then, Hey, this is my first time I'm
calling on the radio station. But I always listen to
this station because they helped me, you know, stuff really
important in life and in New Zealand. But it's really
interesting to hear this program because I always loved to
listen to invest in the house because my dad used
(25:17):
to say to me, it's good to own a house
and I own a plant new car. So in that
medici he prought us I was twenty years old, and
then he put it together a plan for us to
come to PI house. Now he retired back to back
home to some more. Me and my two sisters were
(25:40):
own a house and now sisters moving out. She has
her own house being and now it's me and my wife.
I get married. Me and my wife is in title
of his house. We've been here for six twenty plus years.
But I was listening to and always interesting because I
want to have to build to come out with another
(26:03):
house on top from the US the Eco t what
I heard from from people. I just need to know
if be A bought for an a call to give
me a number or something to talk to contact her
and see if she can help me and my situation,
(26:23):
because you know it's I can't talk on the radio
with me.
Speaker 2 (26:27):
No, no, that's that's no, that's okay. Where is the
best place for people to get information about this or
find someone to help them all yourself?
Speaker 4 (26:36):
Yeah, No, that's a that's a really good question. I've
been more than happy to chat to you, so you can.
Also you can look me up on my website, which
is the propertylifestyle dot com, and it gives you a
link to my calendly. So I'm actually known as the
Queen of Property, which so if you put Queen of Property,
my calendly comes up, and you can just book a
call straight with me and then I will get on
(26:57):
the phone and we can just chat and I can
see how I can help you.
Speaker 2 (27:01):
Thank you for your call. O one hundred eighty eighty
is the number to call. You can text ninety two
ninety two. Got another one here for you. Nicole from
kirk fifty three years old. He's got two hundred and
ten thousand dollars left on his mortgage. He's bought a
door upper home and has almost finished the bathrooms, the kitchen,
et cetera. He's not going to have enough to do
(27:21):
the carpet and finish a few jobs. Should he add
twenty thousand to the mortgage?
Speaker 4 (27:26):
Is is he planning to sell it straight away? Because
if he is, what you can do is you can
actually just go and put the carpet on your queue
card or something like that. So I use carpet cart
in Henderson, if them in Auckland, and they usually do
a deal you can do like thirty months or something,
no payments, no interest for your carpet. So I would
go and do that because that costs you nothing, and
(27:48):
then buy then it would be sold and you just
pay that back no interest. I think it's about a
thirty five dollar fee, and that's a really good way
if you're doing it, if you're going to sell it
straight away, if you're going to sell it, if you're
going to keep it, well, then that's a different kettle
of fish. But there's just another way of doing it
without borrowing that little bit of extra that you're short on.
There we go.
Speaker 2 (28:07):
I hope that helps Kirk. Somebody has mentioned here I
can't quite work out the text, to be honest with you,
but just talking about would you buy a Body corporate townhouse?
Speaker 4 (28:18):
No, okay, I can go into detail as to why
go from it, So briefly, I've been there, done that
big mistake, you know, going of mistakes, I really am.
And the reason is twofold. One is you've got no
control over the Body corporate going up, which it does.
And secondly, you've got no control over what the Body
Corp chooses to upgrade. So I've had people lose a
(28:40):
house because they've chosen to upgrade things. Then they said, hey,
we're short, please everyone put in one hundred thousand, and
this person didn't have it, had to sell the house.
And you can get all sorts of regulations. You've got
to upgrade your lift because of the fire escape and
all those sorts of things. I have done it, and
would I do it?
Speaker 3 (28:56):
No?
Speaker 2 (29:00):
I think the text was saying, would you buy a
body corporate townhouse? Or is it worth the owner getting
out of the Body corporate before selling it.
Speaker 4 (29:07):
Look, if it's just to live on, if it's your
own personal Q one family home, do what you like.
Ifing's wrong with having a Body corporate townhouse, I think
that's what you love because they come with a certain lifestyle.
Would I buy and as an investment?
Speaker 3 (29:20):
No?
Speaker 4 (29:20):
Because the numbers don't work as well.
Speaker 2 (29:22):
Oh e one hundred and eighty ten eighty is the
number to call. You can text on ninety two ninety two.
Nicole Lewis is our guest this hour. We're talking about
property investment. Back shortly the busies. It is seventeen to five.
(29:44):
Ye're with the One Roof radio show and Nicole Lewis,
property investor, is my guest. This our Alice, Welcome to
the show. Good afternoon.
Speaker 5 (29:53):
Oh my god, Nicole is so onto it. I'm looking
at retiring soon because I'm sixty five and a half
and I'm thinking of moving to Haste. I live in Wellington,
and yes we've dropped a hell of a lot of
money in house prices, but I'm looking at moving possibly
(30:14):
into a village. How do you think those rates.
Speaker 4 (30:21):
Well, that's a controversial question to ask me. So funny
my father in law is looking at villages as well.
So from a lifetile lifestyle perspective, I think they're fantastic
because there's so much companionship and activities and those sorts
of things that they're amazing. From an investment perspective, they're
terrible because you only get to get the right to occupy,
(30:43):
and then of course once you decide to sell or
leave that you only get your money back less the
percentage you've got to pay to refurbish it, which I
think is terrible from an investment perspective. But I think
when you get to the retirement phase. Let's face it,
lifestyle is the number one. You've got to enjoy the
rest of your life and live in the type of
(31:05):
moment that you're going to flourish in and als, what
are you going to do with your house in Wellington?
Speaker 5 (31:10):
Well, I've only got a townhouse that's just dropped two
hundred and seventy five thousand dollars because of the QVS.
I'll sell it because this I mean, I've lived in
Wellington all my life. I'm sixty five and a half
and yeah, I love Wellington, but I'd rather live in
(31:31):
the Hawk's Baby. But you've got good food and fruits
and lifestyle, so yeah, I wouldn't rent it out, but
I have got quite a large term deposit investment.
Speaker 2 (31:49):
Yeah.
Speaker 4 (31:50):
So banks typically don't like to lend to people when
they're over sixty. Don't say they don't do it. But
you've got an extra one hundred or so hopes to
jump through. It's very difficult. So therefore you mostly for retirement.
Villages need to pay cash for the property you're buying,
which means a lot of people need to sell their
(32:11):
house in order to do that. But if you don't
have to sell your house, then I mean by all means,
if you want to, you can. But then it's just
a case of thinking, how can you get the best
return on the capital you've got left. Getting rent in
is a good return. You might potentially still sell your
unit in Wellington and go and buy two or three
units somewhere else to still keep them. Hawks Bays a
(32:34):
great place, there's great units there to keep multiple income
coming in. You might just put it in the bank
and put it into an investment. Totally up to you.
Speaker 5 (32:43):
I think I'd like to try and find a tiny home.
Speaker 4 (32:47):
Yeah, that would be very smart. Yeah, then you've got
something else, because don't forget. Property makes us money in
two ways. One is, of course the cash flow coming in,
but the second is the equity that we get in
our capital gain, which doesn't happen under retirement.
Speaker 2 (33:01):
Village loving to talk to Ellis. Thank you for your call.
Rob takes to say, great show. I just sold a
house in Hamilton. What would you advise to buy with
seven hundred thousand as an investment?
Speaker 4 (33:13):
Seven hundred thousand as an investment? What I would do
as I'd go searching for my nice blocks of multiple units,
you'll get seven hundred thousand most of the places around
the country. We're usually around that, we're always under a mill.
You should be able to get your nice block of
three and you'd go maybe road a Ruer Dunedin to
(33:36):
Maru in v Cargo. We bought tokaroa sort of Yeah,
around those sorts of areas, you'll find them and yeah,
just keep searching.
Speaker 2 (33:49):
Would you be holding on to those for a long
period of time, would that be the aim there?
Speaker 1 (33:54):
Yeah?
Speaker 4 (33:54):
Yeah, correct. I mean the ideal is that when we're
increasing our investment portfolio, we want to hold them twenty
thirty years ideally, but life happens. You don't know what
might happen. So I look at it saying you two
things you're going to get his cash flow and capital growth.
A lot of people will come to me and say
I want capital growth, and I go why because it's
(34:14):
only any use to you if you borrow against it
or sell it. And then when people think about that,
they go, oh, well, maybe I want cash flow because
your cash flow property is what gets you through that.
It's your security, and don't forget those properties go up
to Either way you get capital growth.
Speaker 2 (34:29):
Tina joins us. Now, good afternoon, Tina, Hi.
Speaker 6 (34:32):
Hi, how are you. I just have a question in
regards to my dad. We've just had a little bit
of a meeting this morning with him. He's got a
freehold house which is probably worth probably about nine hundred
to a million, and he wants to free up some money.
But he's on attention, you know, so he can just
do a few things on his welllictedly, he wants to
(34:53):
get a new car and just a few bits and pieces,
is any way, I mean, what can you do? I
mean we looked at the heart We were discussing the
Heartland today, but we're not too sure whether that's going
to be the right course for us.
Speaker 4 (35:06):
Oh is that one of the reverse mortgages?
Speaker 3 (35:08):
Yeah?
Speaker 4 (35:11):
Yeah, see I don't I mean much as I like Hartley,
I don't like reverse mortgages so much because they are
very good for the bank and not so great for
your dad.
Speaker 6 (35:21):
Yeah, that's what we sort of discussed this morning. But
I mean he wants he wants a say in his
own home, which is fair and ass yes it is,
but all his money is in that home. Yeah, and
he's on a pension.
Speaker 4 (35:34):
I would do something way outside the box, and you'd
have to get expert advice. On how to do it.
I would use that equity to do a property deal
that would go and make him as fifty sixty seventy
thousand dollars he wants. He's got to pay your tax
and then he's got his cash leftover, he's got his
home leftover, he's got no mortgages. So he would haply
be like an investor or a silent partner or something
(35:55):
like that that for people that know what they do. Look,
I do do that type of thing. So I think
maybe get in touch, will have a chat and I
can point you and what to look for and what
not to look for with something like that.
Speaker 1 (36:08):
Yeah.
Speaker 4 (36:09):
Yeah, it's a long conversation, but we want to try
and do something that's the rest free. Yeah, you want
something risk free and reverse mortgages, then then they're not risky,
but they're not so good for your dad.
Speaker 3 (36:20):
Yeah.
Speaker 6 (36:21):
Okay, well I heard your or your details that you
go to the other guy, so I will look that
up and we'll be in contact.
Speaker 4 (36:28):
Yeah, okay, thanks for.
Speaker 2 (36:29):
Again, thanks for the call, Tina. The propertylifestyle dot Com
is what you're after if you missed it before. Another
text here quickly. I'm fifty eight years old. No mortgage.
House is worth nine hundred and fifty thousand. I've got
fifty thousand cash. Any ideas what I should do?
Speaker 4 (36:45):
Okay? Well, you see this is where I say, what's
your long term plan?
Speaker 2 (36:50):
You know, I was reading it and I was going, Gavin,
what's the plan? Where do you want to what are
you trying to?
Speaker 4 (36:55):
You know, where do you want to achieve?
Speaker 3 (36:56):
Yeah?
Speaker 4 (36:57):
Exactly, and then most people dance between. In my book,
I talk about, you know, as I say, quadrant four
where we're passive and come do we want to go
and buy some new or Quadrant three where it's active
income because we want to go and do a deal.
Much more about that in my new book because I
said no money deals where I go through exact stories
like Jesse's. But yeah, you've got to start with what
do you want to achieve? And then we can answer
(37:17):
the question in the right way for you.
Speaker 2 (37:19):
Nicole Lewis, it has been an absolute delight to have
you with us. Thank you so much for your hour today.
I think we've all learned an awful lot. Should we
do that we do Property of the week now if
we do it after Okay, thank you very much, Tyra.
I'm getting instructions, getting my head around things here. We're
going to take a quick break back with you in
just a moment, the.
Speaker 1 (37:39):
One roof Property of the Week on the Weekend Collective.
Speaker 2 (37:44):
So we were all admiring this house today in the
office at eighty six Goodland Drive, Dairy Flat and Rodney.
Four bedrooms, three bathrooms, it's got a four car garage,
but there's five other spots to packer cats. We're admiring
this really gorgeous property and then Nicole walks in and goes,
oh that's my house. I thought, Wow, who better to
(38:04):
sell property of the week. This looks absolutely beautiful. And
I know that you've had well you've got young adults
and things now, but I imagine this is an amazing
home for a family.
Speaker 4 (38:13):
Oh look, it is absolutely stunning. It's in the Goodland's
country estate, which is magic. The minute you drive through
the door and it's just people are fantastic. It's all
secure security cameras as you're driving and all sorts of
things like that. Absolutely magic. We spent hours in the
pool and the pool house and playing games and it's
on an acre. It's brilliant and.
Speaker 2 (38:33):
A gourmet kitchen. The kitchen looks amazing.
Speaker 3 (38:35):
You good.
Speaker 4 (38:36):
No, I don't like cooking, but you've got to have
two ovens and a scullery.
Speaker 3 (38:39):
Why not?
Speaker 2 (38:40):
So this place has absolutely everything. It looks absolutely stunning.
Speaker 4 (38:46):
Well are you leaving?
Speaker 2 (38:48):
Oh well yeah, it's a whole other story it is.
Speaker 4 (38:52):
We got another house and a bit more land for
the horses. Well there we go, but it is googeous.
Speaker 2 (38:57):
Go and have a peep for eighty six Goodland Drive
Dairy Flat, Rodney is the one roof property of the week.
Speaker 5 (39:03):
Now.
Speaker 2 (39:03):
I'd like to thank you once again for coming in
and joining us. This out for audio information and we
had a lot of texts saying that this has been
a very helpful hour for them. The propertylifestyle dot com
is where people find you, isn't it indeed? And what's
the name of the book? Out next week? Out next week.
Speaker 4 (39:19):
We've got no money deals how to buy property when
you're stuck for cash.
Speaker 2 (39:23):
Fantastic, So nice to meet you, Thank you for coming in.
Thanks coming up next hour. John Cowen is with us
for the Parents squad Rundown and look at this time
of the year, a lot of parents are saying goodbye
to their teenagers, possibly for the first time they're heading
off to university. Maybe they're going on in oe and
it can be quite a it can be quite a
(39:43):
difficult time for both parent and child. So we're going
to have a bit of a talk about how to
deal with this and how to deal with things when
maybe the teenager has headed off into a hall things
aren't going great. They're trying to settle in how can
we best support them, but also say suck it up,
you're there, you got to get on with it. So
I'm really looking forward to having job with us next
(40:04):
hour and the parent squad. It is four minutes to five.
You with news you big think you like that? I
think you light that.
Speaker 5 (40:13):
We're not glad that like that. Let me know.
Speaker 1 (41:08):
For more from the Weekend Collective, listen live to News
Talk ZEDB weekends from three pm, or follow the podcast
on iHeartRadio.
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