Next Property Workshop on 6th July 2024

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Landlords, stop keeping your tenants

Renting, most of us have been there. Whether you once did, or still do, you have probably felt that pinch when realising that you’re spending so much of your hard earned income paying ‘the wealthy, greedy landlord’s’ mortgage. If you know my story, you’ll know not that long ago I was in the same boat, but now the situation’s reversed and I’m the landlord. I believe landlords have an opportunity to help their tenants realise their financial potential, as they have the knowledge and experience to show that it’s not as difficult to get into home ownership as some may think that it is.

Successful companies led by great leaders, understand that nurturing their employees by creating opportunities for them to grow and improve their skills, without the expectation that they are locked in the company for life, are the reason for their success. I feel that landlords too have a responsibility to not hold their tenants back by trying to keep them and should actually encourage them to get into their own home.

15 years ago when I was working in a local bank branch, a couple came in to insure their brand new car that they had just purchased… it was $80,000! They told me that their landlord was nice and hadn’t increased their rent in the past 8 years so they could now afford to purchase this luxury car. In this situation, it might seem like a win win for both the landlord and the tenants, but in reality they both lose.

In the case of the couple mentioned above, the landlord probably felt they had great tenants so to keep them there longer, they kept the rent the same. However, if you’re an investor trying to make the most of your property portfolio, you’re missing an opportunity to optimise your financial situation.

As for the tenants, they thought they had it made when they were paying below market rent so were ‘saving’. In reality, they’re allowing themselves to stay a slave to their landlord’s mortgage.

If you are renting, you are forever at the mercy of the landlord, from how long you can stay in your ‘home’ to the freedom to make it feel your own and the ever rising cost to live there. But the biggest thing so many don’t realise is that you have a 0 asset position, even after 10 or 20 years.

Auckland house prices have doubled on average every ten years and there are no signs of it changing. If you were to buy a house in Auckland now, the average price is $1m, 10 years from now it will be worth $2m and in 20 years… $4m. Meanwhile, your mortgage payments will likely continue to go down, while renters will be paying more and more.

If you’re renting, don’t think that there’s no hope of home ownership. It’s never too late to achieve your goals. I’m proof that it’s possible!


Lucia Xiao  |



Check out Lucia’s book, Financial Freedom – 5 Steps 5 Years.

Lucia is passionate about helping Kiwis realise their financial potential so she’s written a book that covers her journey from living in a state house to building a property portfolio of over $17 million and highlights her five lessons and steps to achieving financial freedom.