Safe As Houses (column)

Olly Newland’s Column, September 2010

Hopefully all of you were untouched by the recent events surrounding South Canterbury Finance – let alone all the other finance houses that have collapsed over the last few years.

These events are a nightmare, even to witness. As details painfully slowly emerge it quite takes your breath away to learn of the shonky lending and the unbelievable decisions made by these supposed leaders of finance.

Despite the unending use of high-powered computers, and access to top accountants, economists, lawyers coupled with bottomless pockets, they still got it wrong.

I have had to deal with many clients who have been caught by the fall-out of some type or other, either directly or indirectly, and upon hard examination we almost always find that something that can be done to lessen or sometimes completely solve any unintended consequences.

Dealing with a problem directly and not burying your head in the sand, will almost always find the solution. Life has taught me that the thinking is almost always worse than the doing.

Taking control of your future

Now is the time to take responsibility for your own financial future and stop relying on others taking your hard earned money and making crazy decisions with it.

The last five decades full time in the property business has proved to me one thing for sure: Investing in land and buildings are, in the long term, the only sure way to go.

I take comfort from the fact that what worried me five years ago doesn’t worry me now — so in five years I won’t be worrying about what is happening today.

You too can take this attitude and derive some comfort from the thought — but action is still required. The alternative is to remain sitting — staring at the wall — doing nothing and letting events roll over you.

 

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Posted in News & Articles | Tagged | 2 Replies

2 thoughts on “Safe As Houses (column)

  1. Hi Olly. Just reading your latest column about your friend who was wanting to build. We have rental property worth over 1.7m and our own home 500k. That’s equity. We wanted to borrow to build another house for our selves. We have 300k cash invested and wanted 300k. ANZ said we will give you 100k.They can stick it. Like your friend we are taking it easy.
    Clive

  2. Hi Olly,
    I found it hard to believe that the landlord sold his $1.75m worth building
    for $1m just because the fear of it being empty. He should know the market and the value of his building, or shouldn’t he? Is he a fool?

    And you didn’t explain the gap between the average household income and the still high house prices which I believe is the foundation for the property market. So I am not convinced that the next boom will be coming soon—-surely one day but not in the near future I believe.

    Regards

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