Money 2013: Now for something a little bit different

by Jonathan Underhill / 28 February, 2013
Alternative investment options.
Charles Goldie’s No Koora te Cigaretti
Last year, Webb’s sold Charles Goldie’s No Koora te Cigaretti for $337, 500.


Remember ostrich farms? For a year or two in the late 1980s, they were all the go for investors with cash to burn – who might as well have lit a barbecue with dollar notes and roasted the big birds’ parts thereon. These days, you’d be hard-pressed to find an ostrich in New Zealand outside a zoo. In fact, the current version of the ostrich-farm investment is hard to find – perhaps the past few years have taught New Zealand investors the value of caution.

However, intrepid types will always be looking for stones unturned. Here are a few of the options:

CAR PARKS AND STORAGE UNITS Do not go there unless you can buy a whole parking building or storage facility. Experiments in selling individual carparks and storage units to small investors have been tried in New Zealand but they have rarely been successful.

“Anyone’s who’s invested in car parks has generally lost money,” says Wellington valuer Nigel Lockwood. Mark Bateman at Storage King, a franchise storage unit operator, says unless you’ve got $5-7 million and a site with room for 500-600 units, forget it.

COLLATERALISED DEBT OBLIGATIONS (CDOs) AND ONLINE FOREIGN EXCHANGE TRADING Strangely, these deeply risky investments are pushed at investors through commercial radio advertising and cinema ads. Unless you have deep pockets and an even deeper understanding of global debt and currency markets, don’t touch these with a barge pole. You’re safer chucking money into a pokie machine.

EXCHANGE TRADED FUNDS ETFs are big business globally and are attractive because they give investors exposure to the movement of a whole market, and avoid the pesky business of actually boning up on specific companies before the shares are bought. Such products exist in New Zealand, but they’re underdeveloped, says Andrew Bascand, who hints at moves afoot in the professional investment community to rectify that shortcoming. Watch this space.

BONUS BONDS Possibly the least logical investment ever devised. ANZ Bank owns the Bonus Bonds franchise and will happily take your money on the promise of no interest payments and perhaps the occasional prize. It’s worth money to the bank, not to you.

SUBORDINATED DEBT In these times of low interest rates, the returns from fixed-interest investments look downright disappointing. However, there will always be a few high-risk, poorly rated offerings out there with high interest rates. Bascand’s advice? Don’t. Two generations of investors have been badly burnt by the likes of high-interest-bearing Equiticorp bonds in the 1990s and then the finance company busts late last decade. Hopefully, we’ve all learnt by now that if it looks too good to be true, it probably is.

ART It’s a fair bet that your prized Hotere just got a lot more valuable, although the advice from art dealers is to try to find up and coming artists whose work has yet to be discovered. It’s more affordable for the small investor. Make sure you like it before you buy it, though. There are no guarantees in this market.



Money 2013










MostReadArticlesCollectionWidget - Most Read - Used in articles
AdvertModule - Advert - M-Rec / Halfpage

Latest

How empathy can make the world a worse place
71431 2017-04-24 00:00:00Z Social issues

How empathy can make the world a worse place

by Catherine Woulfe

Many of us think that high empathy makes you a good person, but giving in to this “gut wrench” can make the world worse, says a Yale psychologist.

Read more
For the Fallen: Remembering those lost to war
71473 2017-04-24 00:00:00Z History

For the Fallen: Remembering those lost to war

by Fiona Terry

Every day before sundown, a Last Post ceremony is held at the National War Memorial in Wellington, to remember those lost in World War I.

Read more
Film review: Ghost in the Shell
71490 2017-04-24 00:00:00Z Movies

Film review: Ghost in the Shell

by Russell Baillie

Nothing dates faster than a past idea of the future.

Read more
The rate of technological change is now exceeding our ability to adapt
71303 2017-04-24 00:00:00Z Technology

The rate of technological change is now exceeding …

by Peter Griffin

A decade on from the revolution of 2007, the pace and rate of change are exceeding our capacity to adapt to new technologies.

Read more
Government tests electric limo for Crown fleet
71520 2017-04-24 00:00:00Z Technology

Government tests electric limo for Crown fleet

by Benedict Collins

An electric-hybrid limousine is being put through its paces to see whether it's up to the job of transporting politicians and VIPs around the country.

Read more
What growing antibiotic resistance means for livestock and the environment
71360 2017-04-23 00:00:00Z Social issues

What growing antibiotic resistance means for lives…

by Sally Blundell

Animals kept in close proximity, like battery chickens, are at risk of infectious disease outbreaks that require antibiotic use.

Read more
The little-known story of Ernest Rutherford's secret anti-submarine work in WWI
71418 2017-04-23 00:00:00Z History

The little-known story of Ernest Rutherford's secr…

by Frank Duffield

Famous for his work splitting the atom, Ernest Rutherford also distinguished himself in secret anti-submarine research that helped the Allies win WWI.

Read more
Book review: Larchfield by Polly Clark
71160 2017-04-23 00:00:00Z Books

Book review: Larchfield by Polly Clark

by Nicholas Reid

Poet WH Auden stars in time-hurdling novel – as a life coach to a lonely mum.

Read more