Growing your future
When it comes to securing your financial future, growth assets and collaboration go hand in hand.
When it comes to securing your financial future, growth assets and collaboration go hand in hand.
Words Owen Cooney / Photos Jahl Marshall
In times of uncertainty and fear, it’s hard to know where your money should go. All this talk about inflation can be confusing but by taking a step back, and looking at the bigger picture, you can get a better understanding of where your money is best kept in hard times.
In times of rising inflation, commercial investment can be a wise move. Even when the yield on a commercial property remains the same, your dollar is still worth a dollar. The bank’s dollar, on the other hand, is worth less and less with inflation.
Growth assets, such as commercial investment, will protect the spending power of your dollar. Long leases hold through to the next cycle, and so being exposed to growth assets is a game you need to be playing if you hope to grow your wealth long term.
However, with all of today’s challenges, it becomes hard to even create a wealth plan and build a future in the first place. That’s where a collaborative approach can work. Joining a private collective means you join a group of like-minded individuals who jointly purchase, then lease, the building in question.
There are many advantages to owning a share of a building using this model, compared to owning the building outright.
Firstly, the collective admin team does the legwork in that they find high-quality properties worth investing in. Secondly, they ensure the numbers stack up and the right contractual arrangements are in place to generate a profit from the get-go. And, thirdly, they organise reliable tenants and take care of all bank financing, lease arrangements and financial reporting.
If you're keen to connect with our network of investors and potentially join a collective when the right opportunity arises, head over to the Classic Collectives website and schedule your own 15-minute discovery call. There are no obligations to join our syndicates; we’re simply here to answer your questions.
Being able to ask honest questions and get straight answers is perhaps the best investment of all. It only costs your time.
Level up your property game
Residential landlords have it tougher than ever right now and while new policy may have pulled the plug on decent returns and capital gains, things are certainly looking up for property investment of a different kind.
Residential landlords have it tougher than ever right now and while new policy may have pulled the plug on decent returns and capital gains, things are certainly looking up for property investment of a different kind.
Words Owen Cooney | Photo Jahl Marshall
Buying a residential rental property has been the "go-to" investment for ordinary Kiwis for decades. Many of us have used the equity in our family home to leverage into a residential property portfolio and build our wealth over time. But today, skyrocketing house prices mean the days of buying a good quality rental for $400,000 are a long-forgotten dream.
Interest on loans is no longer tax deductible, and the healthy homes requirements mean landlords must pay (sometimes hefty sums) to upgrade the heating, insulation, ventilation and so on. Interest rates are rising and banks are not as forthcoming with mortgage approvals as they once were.
What most Kiwis don’t realise is that, with the right tactic, commercial property can be a more affordable alternative with even better returns on your investment. High-rise buildings, shopping malls, health hubs, childcare centres and commercial offices all may seem out of reach to the suburban home investor, but the good news is you do not have to be a multi-millionaire to own them.
Classic Collectives Limited establishes private collectives of individuals who are willing to collaborate to become joint owners of premium commercial and/or industrial property. From supermarkets in Pōkeno to community shopping centres in North Canterbury, they identify high-quality buildings and bring the right mix of investors together to purchase and lease them.
Some of these investors are retirees or nearing the end of their working careers – but there’s a rise in people in their 30s and 40s who see the opportunity to establish a sound investment that will not only provide income, but also have growth potential.
By collaborating with other like-minded individuals, it’s entirely possible to own a share of a substantial commercial building. The benefits of the collectives include receiving a positive yield from the get-go, and having independent professional management so there is no day-to-day workload or responsibilities involved.
So instead of driving past your rental property and noticing the grass is overgrown, you can level up your investment portfolio by just investing smarter and take pride in knowing you own a significant multi-million
dollar asset – however many stories high it might be!
invest@classiccollectives.co.nz