Even though the current situation when it comes to the financial aspect may not be the best for a lot of people, it hasn’t stopped many of them from considering investing in something. Of course, you will always have those individuals who find it pointless and are more into spending their cash on other things, but that doesn’t necessarily mean that investing is a bad idea.
On the contrary. It can potentially bring a substantial amount of money, which means that you will get the chance to improve your lifestyle and have some form of security. Now, since this article is dedicated to lovely New Zealand, today we will provide New Zealanders with some tips that just might help them figure out what to invest in.
The Best Investments For Ambitious New Zealanders
KiwiSaver
According to a majority of seasoned investors from this country, KiwiSaver is for sure one of the best investment alternatives for the time being. What’s great about it is the fact that your chances of making a solid return are very high.
Additionally, it’s free of charge to join KiwiSaver, however, if you contribute more than $1,043 per year, the government is going to add $521 to your balance. So what are you supposed to do next?
In order to make any further steps, you first need to become a member. Now, if you’ve already done that, then there’s really nothing else you can do. In order to receive a full amount, you first must be over eighteen and contribute the previously mentioned amount every year between 1 July-30 June.
So this leads us to conclude that anybody who earns more than $20,000 and contributes each payday is going to be able to meet the threshold.
What About The Property?
Many investors find that property is always a lucrative idea, especially in developed countries like New Zealand. So the question is, what is the current Auckland property market situation? Many recent reports have shown that Auckland house shoppers have stayed active in the market, despite this whole pandemic situation.
Namely, real estate experts have confirmed that all these restrictions that the world has experienced have minimally impacted the market, which is a great fact. What’s interesting is the fact that sales numbers are almost exactly as they’ve been before Covid-19, which just goes to show that investing in real estate is, for now, a very good idea!
Savings Accounts
Now, this may provide you with the best possible investment return (due to the fact that interest rates stay low), but do not forget that even savings accounts have their purpose. First and foremost, you will get interest on cash that would otherwise just stay in your bank account and do nothing that could be potentially beneficial for you.
Additionally, and most importantly, your savings account is going to hold cash that eventually becomes less accessible, which means that it decreases the chance of spending it. So is it difficult to set up the account?
Don’t worry, it isn’t! Still, keep in mind that the interest rates vary from bank to bank. If you want to get yourself familiar when it comes to this topic, then it would be recommendable to find an informative and detailed guide that will provide you with everything you need. What we do know is that the minimum investment can vary, however, $500 is a nice amount.
Shares
Over the past couple of years, it seems like more and more people have suddenly become interested in shares. Maybe it’s due to the fact that they’ve become much more accessible lately, especially ever since platforms like Stake, Sharesies, and Hatch were blasted off.
Generally speaking, many people can earn lots of money when purchasing shares, however, this occurs when there’s a rise in the share price. For instance, purchasing 1,000 shares of Xero at one dollar (which means that the total cost is $1,000) and selling them at eighty dollars looks like this – total profit equals $80,000 – $1,000 = $79,000.
Furthermore, every single time you purchase and sell shares, you will have to set aside some money for a brokerage fee. Now, in order to lower your costs, the best thing that you can do is to find a good platform that actually charges low brokerage. This way, the fees are not going to “devour” your earnings. When it comes to New Zealand, Sharesies is the best option.
There are so many great opportunities for New Zealanders when it comes to investing, however, we’ve only managed to suggest a couple of them that will surely enhance your financial situation.