When many of us were growing up, life revolved around being independent. Buy your own house. Drive around town in your own car. Work in your own office.
While these activities might have made you feel like you had total control over your life (which to a degree meant that you were successful), they were also fairly pricey. Thanks to inflation and the rising cost of living, these same activities are much more expensive today.
A new way of looking at spending is teaching Kiwis to be savvier about their money and what they spend it on. It’s called the ‘sharing economy’ and it’s changing the way we do everything from going to work to buying property.
The rise of the sharing economy
The sharing economy developed out of a desire to connect people, reduce costs and become more socially responsible. Uber is the most obvious example. While the international car-sharing company has had its fair share of controversy, even being banned in some parts of the world, it’s still a preferred mode of transport, particularly with millennials. In fact, Uber has so quickly become a normal part of life in New Zealand it has become a verb. You probably won’t drive into town this weekend; you’ll ‘uber’.
The sharing economy also lets us see the world differently compared to how our parents might have travelled. AirBnB facilitates a mutually-beneficial relationship between holidaymakers who want to travel and property owners who want to earn a few bucks on the side.
Shared office spaces are on the rise too. BizDojo and the B:HIVE on Auckland’s North Shore give small companies and one-man-bands the chance to do business on a much larger scale than they might have been able to do by themselves. Companies pay less comparatively in overheads because they share the costs with everyone else in the building, and enjoy all the benefits that a big business would, like receptionists, meeting rooms and state-of-the-art technology. Rubbing shoulders with like-minded folk can also mean an increase in leads, while Friday night drinks enables smaller businesses and freelancers to connect with more people socially.
The sharing economy meets property
Traditionally, if you wanted to buy a house you’d save up a massive deposit on your own or with your significant other, then reap the financial rewards (and cope with the risk and semi-regular market downturns) yourself.
But thanks to the rising cost of property, particularly in New Zealand’s main centres, many people can’t afford to get into property by themselves anymore. As a result, they assume they’ll never be able to.
The Property Crowd empowers everyone from first-time buyers to seasoned investors to buy property by leveraging the power of many. The concept is simple: instead of buying a property outright, you buy PropertyShares (or shares in a company that owns an investment property) for as little as $100. Other people do the same, and by your powers combined you purchase a property together.
The financial benefits are significant, particularly because property purchasers don’t need to save big deposits or sign onto massive mortgages. Pitching in with other people means that profits are shared between you.
Make the sharing economy work for your property aspirations
If you want to
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