1. Investment Assessment

2. BIO! Josh Mudgway * 18 years old *Single, living at home *Car debt *Weekly income around $560 *Pays board weekly $100 *Builders apprentice.

3. Josh’s Goals. ✘ Short term: Pay off debt, buy tools needed for career. ✘ Medium term: Travel and see the world. ✘ Long term: Own land and build own house on it. These goals are suited to Josh’s personal interests and his life stage, because he is young he has his whole life ahead of him. His goals will no doubt develop over time.

4. Short Term Goals Pay off debt: Josh wants to pay off his new ute, that is perfect for his job as a builder, within the next 12 months. He wants to pay as much as he can afford weekly so that he does not end up paying high interest. Buy high quality tools: Josh’s other goal is to equip himself with all the tools he will need in his job as a builder. In his eyes the sooner he does this, the better his quality of work will be, hence earning him a pay rise.

5. Medium Term Goals Travel: Josh has only ever travelled to Australia and Rarotonga, he now wants to go out and explore the world on his own terms before he reaches middle aged and has a family to cater for.

6. Long Term Goals Josh’s long term goals is to own land and then build his own house from the ground up. He wants to have accomplished this by the time he is 45.

7. “ “A dream is just a dream. A goal is a dream with a plan and a deadline.” -- Harvey Mckay --

8. Investment “Do not put all your eggs in one basket” - Warren Buffett

9. INVESTOR RISK PROFILE Josh’s investor risk profile is a conservative investor. A conservative investor is someone who looks to minimise ups and downs in the value of investment and is prepared to accept lower returns Josh is one because he is someone who likes to live on the safer side, he doesn't want to take big risks and doesn't need to, as long as he knows the value is going up even if it is only a little.

10. Investment strategy x $25,000 on call savings account x $10,000 Travel money x $20,000 Business x $45,000 House deposit

11. ✘ $13,000 paying off debt. Once that debt is payed off he will own a brand new quality car ✘ This is a good investment because it will help him in his job because he needs a big car for tools that can travel everywhere. ✘ He has this money here because he wants to pay off his ute as fast as he can to avoid high interest rates. $20,000 on call savings ✘ He can also get a good credit rating for the future if he pays off big chunks weekly. ✘ $12,000 will be spent in the most part on tools that will enhance his performance and possibly earn him a pay rise.

13. $45,000 HOUSE DEPOSIT ✘ $45,000 into a house deposit. ✘ One bedroom/bathroom with decent land in Hamilton. ✘ The house is near universities and is ideal for people who work in Auckland but can't afford to live here. ✘ Hamilton is an emerging area as the property value rises. ✘ He could rent it out and have a weekly income that goes straight to paying off the mortgage that he could top up $100 of his own money weekly to make sure it gets payed off quicker so you don't pay as much in interest. ✘ He can sit comfortably and rent the house out as the value of the property rises ✘ When he is ready he can add on extensions with his building ability to the house and then resell for a higher capital gain.

15. INFOGRAPHIC T hat picture shows that Hamilton property values are “surging ahead.” values had generally been increasing at 1 to 2% per quarter in Hamilton since early 2012. Then three months ago things really began to accelerate and over that time values have increased 5.7%. This coincides with the council requiring Auckland investors to have a 30% deposit. This appears to have pushed Auckland investors south to Hamilton to avoid the tougher lending rules and search for higher rental yields.

16. House in Hamilton

18. $20,000 BUSINESS ✘ In the next two years Josh will finish his apprenticeship and can start his own builders business. ✘ This is a start up capital to pay wages, acc levies, material costs, accounting fees. ✘ By starting up his own business he’s not working for someone and has the ability to charge out at a higher rate. ✘ He is then able to keep more of that money in his own pocket after paying his labourers.

19. $10,000 TRAVEL ✘ One of Josh’s main goals is to see the world ✘ He would gain life experience from travelling around the christmas period where there is little to no work around for him anyway. ✘ This would mean he could experience the world and still be able to service his house loan without any issues. ✘ He realises that once a year you need to have a good break to perform at a high level for the rest of the year.