Hello and welcome along to the property Academy podcast. I'm your host Ed McKnight, and I'm deaf and today on the show. We are once again joined by Dy Foster who is a property investor and executive leadership coach and we are very proud to call her an opus mountains client. And today we are going to be talking about the different motivations to get into property based on the sort of generation you're in.It is really interesting because she has convinced or cajoled her family to get into property and get exposed to property. So right now I believe die that you're helping your niece and nephew to to get into property or you're warming them up gently warming them up warming about the conversation hand holding them into going to some of the seminars starting the conversation awesome. And then you've also got your dad who is just invested in property himself. Yes. I'm Mom and Dad have always. He's had businesses and some commercial property. So now it's just you know, sometimes in life you catch up a little bit. So it's just about sitting them up going forward to make sure that the you know, they're in a good position to maintain the capital that they have awesome. So we're going to talk about the different motivations the different concerns and I suppose the different conversations that you're having with these three generations will talk about about the young ones you and Steve and then your parents as well. So let's start with your niece. Whew, what is some of the conversations you're having to warm them up to get them interested in the property Market. The first conversation is around paying student loans back. Don't do it don't want don't pay them back. You don't pay your student loan back because you know, if they've got some cash or if they're you know, if they're going to get some cash or whatever the case may be, you know, they're quite good Savers don't throw it into paying the student loan back. It's an interest-free loan and is Long as they're in New Zealand, that's okay. So don't be paying that back too quickly. So the thing for me is looking at my niece and nephew. They things are so different than when I first bought my house at 21, which is 26 years ago. It is so different, you know, I bought my first house for $85,000 and I thought that was a lot of money. I had a deposit of $12,000, you know, so and I thought that that was a big step but it's Different for these guys in so the conversations are around not trying to get rid of your student loan. But using that money that you would have to be much more smarter for the future. So I feel that the best thing that they can do is get exposure to the property Market as quickly as possible and I think a big one there as well is that letting them know that they don't have to live in it. I met in this as a big one as well because we all grow up thinking that oh, well, you know, it's this great New Zealand dreamers that will all Oh by our own homes and live in them and and that's that's a real sign that you're a Dalton. Yeah, it's such a big thing and I've really it's taken me a while. But I've really got my head around the fact that absolutely categorically you don't want to be living in your first property you you know, these kids are more transient the professionals, you know, goodness knows where they're going to live. So why hold them to that and then buying and selling houses because they move why not buy a property get the gains out of By the right property first and foremost and then you can just you can be more Whimsical about where you choose to live. I think that's definitely true because these guys are 23 and 19 who knows where they're going to be and and five years. They may have changed cities three or four times. Well, they would have at least changed cities twice. I would have imagined so absolutely end, you know, we all know well at least I do buying and selling houses when it's your own house is quite a stressful thing to do and if you're trying to sell your house and move and quite often these relationship changes that go and the mix of that incredibly stressful if you're just moving and not doing the transaction of buying and selling a house at the same time way less stress. So if you are going to be moving cities and things like that, I think it's a great thing. And also I just think that we just want exposure to the property Market as soon as we can and I think if you can get it in your Twenties that is amazing. I think I totally identify with the the transients. I've moved over the last 12 months twice. You know and I think that's really indicative of how young people live in the lifestyle that they choose to live. Now. We're that's really valued the ability to move if that's what you're looking for. But you still need exposure to the property market so that you get those gains and I think the other thing that it does is that if you were if you were buying an investment property, that's great and that's over the side and if you were renting then chances are you're only going to be renting a room? Oh so you don't get caught up in the whole I need big furniture and I need a whole house full of furniture. You just you can live more, you know, minimalistic lie, which I think is a really key factor as well. Yes, you're describing my life right now die now let's talk at least talk about you and Steve for a minute because you guys are in your 40s stage in his 50s check that so you guys are 40s 50s. What sort of concerns did you did you guys have? Talked about vacancy already in the last one, right? Yeah. Absolutely. I think one of the big concerns is you know, when I was 21 and I bought my first house and it was $85,000, you know, when you're buying a property now and it's half a million. It's like ouch, you know, that that's a big sum of money, you know for me to get my head round. There's a big sum of money for me to get my head around and I think that vacancy is one thing because it was the unknown for us, you know the business side of it, but also just just the Lindy non on such a big asset. I can I can certainly imagine because it's interesting being a younger person myself. You see houses there for 500k or whatever and that's what it's always bang or for as long as we've been observing the market. These are the sort of numbers that have been there. I now look at data from the years that I was born and think how houses ever that cheap. I know and I you know, the thing is 1960s a house was something like twice the You'll know these focus better than me. But the average house price was something like twice the average income. That means that if you wanted to get married and work your butt off for three or four years, you could probably almost pay off a house in that time and then you could go on and have children and have a comfortable life. We don't have those choices now, so we have to live differently and we have to think more strategically Steve and I have even had the conversation of do we sell our house and in go and rent ourselves? Very interesting and we have you come on that one. We have decided we've decided to keep our house because we absolutely loved it and take risks and other ways. Yes. Yes choice and I think that that's that's perfectly valid to us because it's it's a lifestyle Choice. It's a personal choice. It's not a business choice. And as long as you know, that that's fine. That's exactly right. But having said that, you know, we did have quite a larger home that we down. Sighs to and and again got rid of so much of our stuff in our furniture and everything to live in a more minimalistic way that reflects our lifestyle in the life that we want to live. So we have consciously downsize because we just didn't want to keep it with anybody else. We just wanted to you know, there's only three of us in our little house and in the Muppet, so we just wanted something that that housed us and not anybody else's expectations. And I think it's really interesting that if we look at the three Generations the yet, the young ones need to need to be convinced that actually you don't need to live in it. And we needed, you know, just deal with that concern for your and Steve's generation. It's this idea about around not having to put so much cash in the in the property that it's going to significantly affect your current Lifestyle the you know, that's why we're talking about vacancy IE not having a tenant in there and then for your parents it was about this idea of taking on debt and I think this is indicative of what you said about back in the 60s, you know, you could really work too. To pay off your mortgage in a very short space of time, but I know that you've had some conversations about taking on debt with with your father. Is that right? Yeah. I think the thing is that there's lots of ways to structure to structure. What you want to do in endru has been incredible. It injury has an incredible strategic brain to think about things a little bit differently in so he's really pushed the boundaries on you know, what we might want to do with mum and dad and you know, what we're trying to do there is it's Amazing how you know people could potentially live for a very long time and when my parents are in their seventies, they're reasonably inexpensive at this point in time. There doesn't listen to this. Hi Mom. So he's going to say that you were there expensive child. No doubt no doubt. So they have reasonably inexpensive at this point in time. But as you get older you do you can get quite expensive with Kia and that type of thing. So it's about sort of again at always for me comes back to choices trying to Maintain as much Capital as one possibly can and you know taking strategies to compensate for those types of things in the future. And as I said Andrew has been incredible strategically with all three of those generations and coming up with strategies for that and something you said to me before we press record for this podcast, which I found really interesting was that for for the young ones. It's really about them right now about trying to get them into property on their own. And then what did you say about about about you and you Parents. So, you know, that's exactly right for the young ones. It's about them. It's about them having independent independent wealth in for Steve and I it's about having a comfortable life and hopefully leaving something for our son Jackson and for mum and dad it's about how did they get a fantastic life leave something for their children and possibly even a third generation fantastic. I think that's really really interesting because this is kind of we often talk about these Three generations on this podcast, you know through a lot of our content and it's kind of just an abstraction you because we're talking about Generations. Generally, whereas here we can kind of see it within the conversations that you're having with with your family and we can kind of personalized. Is it a whole lot more and reminds us that it's actually real you're totally and I think it's a it's a really interesting process to go through and again, you know, I've just been incredibly grateful because I I don't think any of our family are particularly Hands-On with property, you know, they're not going to be the type of people that want to you know, tenant their own places. So all of the services that you know, people like Opus provide are incredibly beneficial for I know for our family a fantastic and that's very kind of you that's very kind of you to say and actually the next one that I think would quite like to record will be because I know you've done it by yourself as well. You know the DIY versus done for you approach. We'll get onto then the next episode awesome. But while you're here, please don't forget to subscribe rate and review the podcast. It really does help us get the message out to more people. And of course if you do want to learn more about property investment or buying your first home, actually then why not sign up for one of our video courses, we've got a free property investment video course, which you can sign up for it opens partners are coded in seed or we have a first home buyers video course just released a few weeks ago, which has a special launch price of nine dollars down from $99 and you can sign up for that at opers. First home. That's ope is first home dot code. I didn't see it. But until next time thanks for listening to the property Academy podcast. I'm your host Steve McKnight and we're going to be back again tomorrow with even more daily Insight strategies and tactics to help you get the most out of the New Zealand property Market until next time.
In this episode, we are once again joined by property investor and executive leadership coach, Di Foster. After helping herself and her husband into property investment, Di began wanting to help her father, nieces and nephews all get into the property market. What Di discovered is that each generation needs to get its head around a slightly different concept. For Millenials, it's lifestyle. Millennials need to understand that they don't need to live in their first property. Sometimes it's more appropriate to buy an investment property and get exposure to the property market, rather than buying an owner-occupier home  For Gen X'ers it's about cash. Gen X'ers need to be reassured that they aren't going to have to sacrifice their lifestyle and cover all of a second mortgage in order to be able to hold the property    For Boomers it's about debt. So many Boomers work their whole lives to get out of debt, and then they need to get back into debt in order to get ahead. The drivers to get into an investment property are also different. For Millennials it's about getting ahead themselves. Gen X'ers want to sort themselves for retirement and for their children, and Boomers want to maintain their capital position in retirement in order to look after their future generations. 