The Keep the Change podcast host is deliberately choosing to rent and invest his savings instead, challenging the deeply ingrained Kiwi money belief that home ownership represents financial success.
“You are not a failure if you are renting ... you’re not a second-class New Zealand citizen,” he says.
While some argue rent is dead money, Kemeys takes a different view.
Opting to rent has allowed him to access a lifestyle he enjoys in a “two-point-something” million-dollar property, without the price tag. “Tying up my capital, ie my house deposit, was just not going to be a good use of my money.”
Getting dividends from his investments also gave him a different perspective. “I’m thinking, okay, I’ve got X amount invested and that’s effectively paid for a whole week of my rent – maybe rent isn’t wasted money”.
His long-term goal is to build enough invested income to cover his rent entirely.
Simply comparing rent versus mortgage payments is an oversimplification, he says. “What about all those other [home ownership] costs that we’re completely ignoring?”
Kemeys isn’t anti-property and admits he may still eventually buy again, but for different reasons. “For me, buying a property will become emotional rather than financial”.
His message to younger New Zealanders isn’t “do not buy” but rather don’t follow the crowd blindly.
“We need to slow down the rush ... figure out what’s best for you and make sure you’ve got a solid plan.”
Watch or listen to the full episode of The Prosperity Project for more.
The Prosperity Project is hosted by Nadine Higgins, an experienced broadcaster and financial adviser.
Follow the show at iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts. New episodes are released every Monday.
