Case Study: “The problem with retirement is it sneaks up on you”

Dave and Anna live a comfortable lifestyle. They take 2 overseas holidays a year, they drive nice cars and like to look after their 4 children.

But they aren’t frivolous either. They live in the same small house they have had for years. They don’t splurge their money.

And they save and invest in their future … rather than blowing it all away on payday.

Having been careful with money, their next step was to invest in property to prepare for their retirement.

Here’s Anna and Dave’s story:

Why did you want to invest in property?

Anna:

“We stumbled into it with our blindfolds on, but we met the right people.”

“We were able to get the most amount of growth in the shortest amount of time”.

Dave:

“We’ve already got one legacy rental from about 6 years ago. So, we thought, perhaps we should look at investing in more property”

“Initially, we looked on our own and looked at some properties in Christchurch.

“But then a colleague of mine at work, who’s an Opes client, spoke very highly of you [Opes]. So I came home to Anna and said: ‘Hey what about these guys’.

“It developed from there. We were in the position to, so we thought we’d hand it over to you guys to see if you can help us”.

What sort of properties have you invested in?

Initially, Dave and Anna looked at investment properties in Christchurch. They went to developers directly and put a couple under contract, thinking they were a good investment.

Anna:

“We’d hunted around and found two great properties. They were both high-spec builds, and we signed contracts on them because we felt so lucky to have them.

“Then we spoke to Andrew … and he said they weren’t going to be the optimal investment.

“So, we decided to give them up. This was hard because we were so emotionally attached to them.”

Instead, they purchased 2 Auckland properties in a Mount Roskill development.

After only contemplating property in Christchurch, this was huge.

Dave:

“Anna and I made a pact to listen to Andrew – he is the expert. And we both agreed we’d do that.

“What had really stymied us is that we didn’t think we could buy in Auckland.

“But he [Andrew] showed us that we could. And we didn’t have any trouble getting the finance, thankfully.

“Andrew steered us in the right direction. We picked up the two best places and we were really happy.

“It was a good chance to go hard on an investment before I retire.

"You want the best yield and capital gain … why buy one property when you can buy two?"

How do you want your life to be different after you invest in property?

Dave and Anna live a comfortable lifestyle, but that doesn’t mean they are frivolous.

If anything, their new investment property is nicer than their own home. They joke about keeping it for themselves.

Dave:

“Yes, we are used to living a nice lifestyle … within reason.

“We're not grandiose. We are still in the same little house. Nothing stupid nice. To me, that’s about right.

“We haven’t made the mistake of living to my salary.

“We don’t want to live an austere life when we get older.

“I save a lot. That money could be blown on a bigger house and better cars, But I’m investing because I want to be able to carry on and have a nice life in retirement.

“The problem with retirement is it sneaks up on you.”

What’s next in your property investment journey?

Anna and Dave would like to buy 2 more properties in a few years time.

If they sell their legacy investment, they can add 2 New Builds to their portfolio.

Dave:

“It was off the cards for us to buy another existing build. Simply because of the tax implications.

“[In a few years] we’ll buy some more. In Auckland again, if we can afford it.

“So then I’ll be 59 and have four brand new properties that I don’t have to worry about.

“Then, when I get to 65 we can look at starting our retirement plan.”

What is your top advice for property investors?

Dave:

“My advice is don’t spend too much time thinking about it. Just make a decision and do something.

“Get into it as soon as you can, and use reputable people.

“I’m not saying it has to be you guys [Opes Partners] but use professional people, and be careful doing it all on your own. Because there are traps you can fall into.”

Anna:

“We don’t have to worry because we have full confidence in the people who are working for us.”

If you want the same service Dave and Anna received, your next step is to book a Portfolio Planning Session. Click here to learn more and book.