first home buyer advice

[JBmurc]

I'm not sure why you quote floating rather than a sub-4% fixed interest rate. If you have a setup where this is deductible against your share profits, it's even easier.

Banks have a very different business model and risk profile to share investors. Your question is like asking why a bank would lend to a farm rather than just growing food for a profit, why lend to a house investor rather than just buying the house themselves and renting it out? Different entities have different motives.

Your other point comparing share investing to property ignores the possibility of a housing crash, which have happened before, will happen again, and could happen here. Being careful with leverage applies equally to property investors as it does to share investors.

And especially as houses in NZ are at record highs + record high av. household debt..low NZ incomes etc

Of course the equitiy market can be horrible in the crash .. I do remember the GFC (I had over 300k in loans in the market) but thats why I have my Sharetrading structured in a company... still got a few tax credits to use up from the GFC.

But property ian't perfect (just ask some CHCH home owners)

Also Good luck selling your NZ property in a major market downturn when several others are for sale on the same street and new R.V's come out with 20% reduction in value and wipes out all your equity.

Also you can buy an ETF or Gold company that will do well during a market crash ..make money while other investment are going down in value.