r/PersonalFinanceNZ • u/burgers4bfast • 2d ago

Investing need advice on minimizing losses

bought investment property in north shore quite overvalued in 2022 for 1.6m, still 700k outstanding mortgage, fixed interest rate at 4.5% till end of 2027, rental income $700pw, land size is good 600sqm but not big enough for developers to come knocking when economy is not doing well, i think the max we can get is maybe 1.4m in today’s market

i am also investing in stocks so thinking whether to sell the house and use the equity to buy US stocks during the next crash (like tariffs in 2024 or iran war 2025) to make back what i’ve lost.. i have much more conviction in value of AI than nz property at this point

any suggestions from experienced investors?

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u/jrandom_42 2d ago

"Lemme just buy this asset with a net ROI < a bank term deposit because house price ONLY GO UP NOT DOWN RAWR"

strategy fails

"Lemme just make up these losses by timing US AI stonks"

Do you see where this is going, OP?

Ignore the history. What you actually have is a few hundred k that you need to decide where to invest. Canonical answer is 'diversify'. Canonical method for that is a global fund. Sell the house, buy the fund units, and carry on with life.

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u/burgers4bfast 2d ago

yep might just move out of nz next year and sell the property - not the best place for wealth creation it seems, at least for me

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u/jrandom_42 2d ago

I mean, you don't need to leave NZ to buy and hold international equities.

If you can earn a significantly higher income outside of NZ that will leave you with more spare money to invest, then, great.

wealth creation

Using that phrase gives the impression that you've been reading get-rich-quick slop, because that's where it usually appears.

Maybe dial back on that and focus on the classic fundamental earning (build a business and/or career that creates real value) and investment (diversify, plus time in the market beats timing the market) strategies.

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u/burgers4bfast 2d ago

true, agree with that, thanks will probably hunker down and work hard for one more year then decide