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THE DRIVING SEAT EVs and the global car economy
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MASTER PLAN The importance of goal setting
SILVER LININGS How the right mindset creates opportunities
I N F O R M E D I NVESTO R
Contents IN THIS ISSUE 8.
Contributors Meet some of our expert contributors.
10. What We Like Martinborough’s new cellar-door dining experience, portable workstation solutions and must-have European kitchen tech.
12.
Essentials We look at what’s hot for summer.
16. Where Our Money Personalities Begin Lynda Moore, Money Mentalist explores how our money mindsets – good or bad – are formed in childhood but can be reprogrammed.
22. What’s Your Money Personality? Take our quiz for a bit of holiday fun and maybe some useful insights too.
24. Investing vs Gambling We’ve all heard the two being compared by hesitant investors – Victoria Harris lays out the facts to dispel those myths.
26. Economic Pessimism Could Cost You Amy Hamilton Chadwick investigates the results of analysis paralysis, hesitation, listening too closely to the media and daily-balance checking when it comes to investment.
30. Going Up, Going Down Economist Cameron Bagrie has the latest on the NZ economy.
32. It’s All in the Goal Setting Martin Hawes explains the SMARTI acronym and how it can keep you on track with your investment and maybe even your golf-score goals.
36. Gender Pay Gap Nobel Prize winner’s ground breaking work uncovers the hidden influence of “greedy work”.
38. Are you Living with Confidence? A recent study confirms young people are more likely to insure their home and contents than themselves.
40. Building Management Software ‘Frankie’ is Taking Off
Joanna Mathers meets Georgie Fenwicke – Frankie’s creator – and learns how this Kiwi large-scale building management platform works and where its headed.
S U M M E R 2 0 2 3 | I N F O R M E D I NVESTO R 2
42. Property Investing Like a Pro Ed McKnight shares the four mindset shifts needed to become a successful property investor.
44. Crypto Rollercoaster The past year has been typified by market ups and downs.
46. How Gratitude can Help us Manage Money Lynda Moore explains this concept and how it can help us all have a longer, more successful, relationship with our money.
48. Electric Vehicles are Changing the World Andrew Kenningham looks at the future impact of EVs from a political, economic and planet perspective.
52. Snapshot What’s impacting the global economy right now?
55. A Review of Exposure for Guarantors Wynn Williams’ Jenny Turner and Michael Brennan have a timely look at points to review if you guarantee a loan.
56. Is Property Investment Still a Good Bet? Simplicity's Sam Stubbs takes a deep dive into our longterm relationship with property investment to find out.
58. The Lowdown on KiwiSaver Withdrawals Dave Copson unpacks the facts on withdrawing money from your KiwiSaver, when it’s possible and how you go about it.
60. Getting Savvy with Your Day to Day Spending Booster’s new smart account keeps an eye on your spending, saving and gives a good rate of return – it even remembers when the power bill’s due.
Redefine your trading strategy. Master every wave.
Pricing correct as of August 2023 and is subject to change.
With derivative products you could lose more than your deposits. You do not own or have any interest in the underlying assets. Investing in derivative products carries significant risks. Seek independent advice and consider our PDS and the relevant Terms and Conditions of Trading at cmcmarkets.co.nz when deciding whether to invest in CMC Markets products. CMC Markets NZ Limited (CN 1705324). Past performance is not indicative of future performance.
I N F O R M E D I NVESTO R
Contents 64 62. A 2024 Outlook to NZ Real Estate David Findlay of Harcourts Mt Albert has a look at likely trends for the property market from 2024 and into the future.
64. The Property Market is on the Move Kelvin Davidson from CoreLogic reviews the early signs of recovery in the market and how this might continue to play out.
66. Understanding the Psychology of Investment PMG Funds’ Matt McHardy considers our unconscious biases and how they can influence our investment outcomes.
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69. Award-winning Auckland Painters Scope Painting, led by Dave Bell, take out awards for their work for a second year.
71. Getting Ready for a New Tenant Sally Lindsay has five top tips to help attract and retain good tenants for your rental property.
72. An Alternative Type of Property Investment As Kiwis we love to invest in property. Oyster Property Group enables those with $10k or more to get a slice of the action.
76. The Risk and Return with Short-term Rentals Stefan Nikolic from Zodiak dispels a few myths we might have believed about the short-term rental market.
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79. Things are Looking Up for Forestry The outlook for the forestry investment sector is greener than ever thanks to changes by the new government which have removed some of the potential handbrakes on the industry.
80. Our Ever-changing Money Mindset Andrew Nicol looks at how money mindsets change through our different life stages.
82. Fashion Update Summer wardrobe must-haves.
84. The Benefits of Hitting Refresh Stephanie Bryant takes a weekend break with Resolution Retreats and discovers the benefits of self-care.
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86. Motoring: Mini Cooper S Convertible Liz Dobson has always been a lover of Minis and this one doesn’t disappoint.
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EDITOR’S LET TER
A Good Time for Reflection
Published by: Opes Media Informed Investor 33 Federal Street, Auckland Central, Auckland. www.informedinvestor.co.nz
Everyone has a different attitude to money, but to make it work for us it’s important to explore how we relate to it. It’s nearly holiday season (the year has flown by) and a good time for reflection. I’m not one for new year’s resolutions, but I do love a bit of soul searching during the spacious summer holidays. This year I’m going to take a long, hard look at my predisposition to spend. I love shopping (books, clothes and music are my obsessions), but this has got me into a lot of trouble in the past. Now I’m older (and a little wiser) I make sure saving comes before spending, although my current house renovations are certainly stretching the family budget. Money is a potent force. It can be used for good or evil and without doubt profoundly influences the trajectory of our lives. Everyone has a different attitude to money. Some (like me) see it as a ticket to good times; others scrimp, save and fear to touch it. Our attitudes are based on a raft of factors – upbringing, financial history, pessimistic or optimistic outlooks – but to make money work for us it’s important to explore how we relate to it. The lead story this issue, written by “money mentalist” Lynda Moore, delves into our “money personalities” – the way in which we relate to money.
and develop over our life, and explains how people can develop better relationships with money. We’ve also modified a quiz taken from Lynda’s website (moneymentalist.com) so you can discover your own “money personality”. It’s quick, easy, and a bit of fun, but it should also get you thinking. This is a great Christmas holiday activity to share with friends and family over a glass (or bottle) of bubbly. Amy Hamilton Chadwick delves into another sort of money personality this issue: the financial pessimist. If you’ve been stung before, it makes sense that you’d be cautious around investing. But as Amy explains, fear of doing anything (or “analysis paralysis”) can prevent you from embracing a brighter financial future. We also check out the new convertible Mini, the importance of goal setting, and how electric cars are changing transport economy worldwide. We really hope you find inspiration in the pages of our magazine and wish you all the very best for this festive season. Take care and happy holidays.
Based on extensive research and the contents of her excellent book, Conversations with Money: A Love Story, she digs deep into our histories, explores how our attitudes change
Joanna Mathers Editor
Editor Joanna Mathers
Resident economist Ed McKnight
Art Director Mark Glover
Printer Webstar
Account Manager Stephanie Bryant – 021 165 8018
Retail Distributor Are Direct
Subscriptions Jill Lewis – subscriptions@informedinvestor.co.nz This magazine is subject to NZ Media Council procedures. A complaint must first be directed in writing, within one month of publication, to the email address, stephanie@informedinvestor.co.nz. If not satisfied with the response, the complaint may be referred to the Media Council PO Box 10-879, The Terrace, Wellington 6143; info@mediacouncil.org.nz. Or use the online complaint form at www.mediacouncil.org.nz. Please include copies of the article and all correspondence with the publication. S U M M E R 2 0 2 3 | I N F O R M E D I NVESTO R 6
Informed Investor is an investment magazine published quarterly by Opes Media. You need Informed Investor’s written permission to reproduce any part of the magazine. Advertising statements and editorial opinions in Informed Investor reflect the views of the advertisers and editorial contributors, not Informed Investor and its staff. Informed Investor’s content comes from sources that Informed Investor considers accurate, but we don’t guarantee its accuracy. Charts in Informed Investor are visually indicative, not exact. The content of Informed Investor is intended as general information only, and you use it at your own risk: Informed Investor magazine is not liable to anybody in any way at all. Informed Investor does not contain financial advice as defined by the Financial Advisers Act 2008. Consult a suitably qualified financial adviser before making investment decisions. Informed Investor magazine does not give any representation regarding the quality, accuracy, completeness or merchantability of the information in this publication or that it is fit for any purpose. To advertise in Informed Investor, you must accept Informed Investor magazine’s advertising terms and conditions. Please contact Stephanie@informedinvestor.co.nz about advertising. Informed Investor is printed on environmentally responsible paper. The paper is produced using elemental chlorine-free pulp, sourced from sustainable and legally harvested farmed trees. The magazine is recyclable. PRINT ISSN 2744-6085 DIGITAL ISSN 2744-6093
Meet Savvy: Your money. Smarter.
Savvy’s debit card and smart account learns how you spend, then helps you save and spend better.
www.boostersavvy.co.nz
Available on the
Booster NZ app The Booster Savvy Scheme (‘Savvy’) is not a bank account and Booster is not a bank. Savvy is a managed fund and Booster Investment Management Limited is the manager and issuer of Savvy. Savvy’s Product Disclosure Statement, and other important information about Savvy (including a comparison highlighting some of the differences between Savvy and a bank account) is available at www.booster.co.nz.
UP FRONT
Meet Some of Our Contributors CAMERON BAGRIE
KELVIN DAVIDSON
Cameron is the managing director of Bagrie Economics, a boutique research firm. He was previously chief economist at ANZ, a position he held for over 11 years.
Kelvin joined CoreLogic in March 2018 as senior research analyst, before moving into his current role of chief economist. He brings with him a wealth of experience, having spent 15 years working largely in private sector economic consultancies in both New Zealand and the UK.
MARTIN HAWES
ANDREW KENNINGHAM
Martin is the chairman of the Summer KiwiSaver Investment Committee. He’s an authorised financial adviser and offers his services throughout New Zealand.
Andrew is the chief Europe economist for Capital Economics.He was previously an economic adviser for the United Kingdom Foreign Exchange.
ANDREW NICOL
SAM STUBBS
Andrew is an authorised financial adviser and the managing partner of Opes Partners. He has more than 15 years’ experience in banking, finance, and property.
Sam is the founder and MD of Simplicity, New Zealand’s only low-cost, nonprofit funds manager. Previously from the banking world having worked for Goldman Sachs and NatWest Markets in London and Hong Kong, Sam believes the finance industry should be as much a force for good as a source of profit.
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C ONTRIBUTORS
DAVID FINDLAY
VICTORIA HARRIS
David owns Harcourts' leading Auckland Central office, JK Realty Group, and recently won REINZ’s Top Manager of the Year. With 20 years’ experience, he is also the MD of Development Projects. His passion, propelling growth in his clients’ real estate portfolios.
Former portfolio manager at Devon Funds, Victoria is co-founder of The Curve, a digital platform aimed at educating women around money.
RICH LYONS
LYNDA MOORE
Rich is the retail investment manager of Oyster Property Group. He is responsible for overseeing both retail and wholesale equity raising for transactions, the growth of Oyster’s investors, and continuing to improve Oyster’s service offering to investors.
Lynda Moore spent 20 years in her own accounting practice before co-founding Money Mentalist. She blends psychology and neuroscience with money coaching.
JENNY TURNER
BEN TUTTY
Jenny Turner is a partner with Wynn Williams, specialising in property law, including residential development.
Ben is an Auckland-based but not Auckland-bound property investor and freelance writer. He’s travelled and worked across Asia, Europe, and Australasia, writing for some of the biggest names in property and finance.
S U M M E R 2 0 2 3 | I N F O R M E D I NVESTO R 9
UP FRONT
What We Like A showcase of trends, technology and luxe living.
Stylish heart The kitchen has always been the heart of the home, but it hasn’t always been this stylish. Owned by Sophia Bristow, Eurotech Design is a company that’s focused on bringing the best international brands and appliances to New Zealand and pairing them with thoughtful design to create spaces with “wow factor” in spades. Sophia believes the design of this most functional of rooms should be based on inspiration. “Design inspiration comes in all shapes and sizes,” she says. “It doesn’t matter if you’re an interior designer, building developer or simply renovating your home. The right kind of inspiration will always help you come up with creative and unique ideas for your projects.” When it comes to design tips, Sophia acknowledges there are a wide range of considerations, catering to form and function. Harmonious integration: It’s important to seamlessly incorporate top-end whiteware and appliances from the get-go. You want to achieve a flawless blend of luxury and utility. Optimised layout: Maximise kitchen space and workflow efficiency, while maintaining design aesthetic. Ensure every square foot serves a purpose. Materials of distinction: Enlist experts to select high-quality materials, finishes and textures so you can elevate the visual appeal and ambience of your kitchen space. Illuminating brilliance: Craft a lighting scheme that enhances functionality and ambience, adding just that extra layer of sophistication. Sustainable elegance: Incorporate sustainable features; it’s more important than ever to be environmentally responsible. Cutting-edge innovations: Look at the latest trends and technological advancements in kitchen design, including smart appliances and integrated solutions that take your kitchen into the future. See eurotechdesign.co.nz for more information. S U M M E R 2 0 2 3 | I N F O R M E D I NVESTO R 1 0
W H AT W E L I K E
Have desk, will travel Hybrid working has “made itself at home” in New Zealand with new research finding two in three Kiwis currently work a mix of in-office, at home and on the go. Taking “the best of both worlds” approach to the next level, Logitech has released a new hybrid tool that allows workers to pop up a desk anywhere. The Logitech Casa Pop-Up Desk is an all-in-one desk that opens up to a laptop stand with a wireless keyboard and intuitive touchpad. This innovative workstation folds down to a notebook size. It’s travel friendly for those that work on the go or hop around working spots. Wellington-based flexible work specialist (or “flexpert”) Gillian Brookes upskills businesses in implementing hybrid structures and approves the Logitech Casa Pop-Up Desk as an ergonomically approved set-up for those also needing to create boundaries between work and home. “Hybrid puts those boundaries under pressure so the more you can do to define them, the better off you’ll be. My advice is to pack away your work things once you’ve finished for the day, so work isn’t taking over your home life.” The Logitech Casa Pop-Up Desk is now available at local tech retailers for RRP$329.95. Visit www.logitech. com/en-nz/products/combos/casa-pop-up-desk. html for more info.
New dining destination A new home and cellar door dining destination for wineries Te Kairanga, Martinborough Vineyard, and the Lighthouse Gin distillery is now open. The new home for the three brands offers an “elevated but not overstated” hospitality experience with three unique internal dining areas seating over 100 in spaces that span casual to intimate, alongside a sun-soaked outdoor terrace which provides the perfect summer spot. Named The Runholder, the restaurant, tasting room, cellar door, distillery, and barrel hall space is nestled on a run of land at Te Kairanga vineyard, a plot originally held by Martinborough’s pioneering namesake, John Martin. Its name is an ode to the richly historied run of land the building now sits on, originally home to sheep and now vines. The interior is inspired by the region’s iconic woolsheds too, with aged linear timber and open ceilings giving a sense of space and intimacy. It will be the largest cellar door restaurant in Martinborough, celebrating local produce from the farm, vine, and beyond, and affording some of the best views and vinos the region offers. Bookings are recommended on www.therunholder.co.nz S U M M E R 2 0 2 3 | I N F O R M E D I NVESTO R 1 1
ESSENTIALS
Making the Most of Summer
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Personality /per·son·al·i·ty/noun
‘The totality of an individual’s behavioural and emotional characteristics.’ Merriam-Webster Dictionary
‘We continue to shape our personality all our life.’ – Albert Camus
MONEY PERSONALITY
Foundations of Your Money Personality Our childhood plays a key role in shaping our money mindset in later life, writes Lynda Moore.
You may not realise it, but the longest relationship we have in our life is with money. Before we were born, our parents were thinking about it. How were they going to fund this little bundle of joy for the next 20 years or so? When we reach the end of our days, and everyone is gathered at our funeral saying fond farewells, through the tears some will be wondering how much of your money they will get! So, it should come as no surprise that the way we handle money as adults often comes from our early years. Those little money memories, that seem insignificant at the time, can have a big impact on how we deal with finances later in life. In other words, our money mindset will dictate our money behaviour and all the decisions we make. Let’s start by exploring how those childhood money memories shape our adult money lives. I’ll share some personal stories and reflections along the way, giving you a front-row seat to the journey from piggy banks to credit cards. Early money memories What is your earliest memory of money?
For me, it was four-year-old Lynda who wanted something; the pink umbrella with all the frills, or the Barbie doll, and my parents coming back with a very firm “no”. Those moments stuck with me; as an only child I was supposed to be spoilt, supposed to get whatever I wanted, right? By the time I was 12 I had figured out how to turn a “no” into a “yes”. Anything that was related to education got a “yes”. So, I became very clever at putting an education spin on everything. As I grew up I made up all sorts of stories about money that set the stage for the next 40 years. Those early experiences formed my money mindset and beliefs. I tossed out the fundamental money lessons that my parents taught me, which were: 1. Handle money with care: Money doesn’t grow on trees and should be used wisely. 2. Skip the splurges: Flashy stuff isn’t always necessary, be practical with your money. 3. Invest in what matters: Whether it’s a great education, experiences, or your retirement, save and invest your money in what is important to you.
‘As I started to earn my own money, things took a very different turn.’ S U M M E R 2 0 2 3 | I N F O R M E D I NVESTO R 1 7