COMMENT: We Kiwis are a funny lot. We like the idea of fabulous wealth when it’s enjoyed by those who are far away in another part of the world – but we’re not so keen on it when it’s experienced by our own. We’ll watch, and enjoy, a reality TV show about the super-rich in Europe, Asia or the Americas and marvel at the huge homes, fast cars and super yachts of the rich and famous – but if a Kiwi dares to engage in the same ostentatious luxury we’ll eventually tear him or her to pieces (metaphorically speaking).
There are lots of theories as to why this is the case. Perhaps it’s a hangover from our recent egalitarian past, perhaps it’s a genetic link to the stoic and no-nonsense Scottish part of our shared heritage – or perhaps it’s just a feature of the cultural-cringe which hangs over our nation like a dark shadow and manifests itself as tall poppy syndrome and a bizarre belief that we shouldn’t get above our station nor, God forbid, do better than our peers.
Whatever the reason, it’s a trait which brings out the very best and the very worst of my fellow countrymen. At its best, it’s the basis of the sense of fairness and fair play that underpins our desire to protect our most vulnerable and makes us the warm, welcoming people that we (usually) are to visitors and new residents. At its worst, it’s behind our nasty tendency to attack those who have succeeded and revel in the misfortune of those who fall on hard times after a period of success.
And it’s not just directed at the very rich and very successful. Even modest success, in the form of financial stability, can make one the target of vitriol and even hatred in 21st century New Zealand. This phenomenon is best exemplified in the way that property investors are consistently targeted by a section of our society and the idea that they might lose a significant proportion of the value of their properties celebrated. Indeed, this attitude has even been encouraged by the current Government which has engaged in a full-on attack on property investors since first coming to power in 2017, consistently portraying these people as privileged, wealthy, and as having access to advantages that others don’t.
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Ashley Church: “The vast majority of property investors are waged or salaried Kiwis who’ve kicked off from the same starting blocks as most of the rest of us.” Photo / Ted Baghurst
Sadly, however, most of the beliefs which underpin these attitudes are simply wrong. Let’s look at some of them and expose them for the myths that they are:
1. People who invest in property come from wealth
While there’s no doubt that the wealthy do invest in property – coming from wealth is by no means a prerequisite for getting started. That’s not to say that property investors don’t become wealthy, over time – but that’s as a result of their efforts – not the basis of them.
2. People who invest in property are from high-income households
The vast majority of property investors, in this country, are waged or salaried Kiwis who’ve kicked off from the same starting blocks as most of the rest of us. I bought my first investment property – a block of flats in Napier – when I barely had two coins to rub together and while the rules make things more difficult right now, there are still plenty of opportunities to get into the market.
3. People who invest in property are well-educated
Lots of educated Kiwis invest in property – but again, that isn’t the basis of their success – and many thousands of others invest in the market without the benefit of having any form of formal education.
4. People who invest in property are risk-takers
While no form of investment is completely without risk – property is very much at the lower end of that scale – which is why tens of thousands of Kiwis are involved in it.
5. Property investors add nothing to the economy
Around 35% of Kiwis rent – a figure which has stayed remarkably consistent for most of the last 100 years – and the vast majority of these rentals are provided by the private sector. Anything which decreases private property investment transfers that obligation to the State – which is simply you and I, as taxpayers. Property Investors are huge contributors to the economy and have saved the nation tens of billions of dollars over the years.
Success – in property or anything else – is about mindset, not advantage. You can be someone who seeks to diminish those who have worked to improve their lot – or you can aspire to be one of them. I know who I prefer to spend my time with.
- Ashley Church is a property commentator for OneRoof.co.nz. Email him at [email protected]
