Client Stories | Property Investment
We’re conscious about client confidentiality. As such, we’ve changed some of the details and information to maintain anonymity. Our client stories give you insights into our approach and how we’re currently helping clients achieve financial freedom.
Client Story: The Liu Family - Making Smart Property Decisions
David and Sarah Liu, both 35, moved to Auckland from Shanghai in 2018 with their young daughter. In early 2019, they purchased their first New Zealand home in Mt Wellington for $875,000 - right at the Auckland median house price. They put down a 20% deposit ($175,000) and took a mortgage for the remaining $700,000. By 2024, their property was valued at approximately $1.15 million.
With rental properties in their area fetching $650-700 per week, they wondered: Should they sell and invest the proceeds elsewhere, or hold the property as a rental investment?
Making Tough Decisions
Like many new New Zealand residents, the Liu’s faced several complex considerations:
Bright-Line Test: Having owned the property for 5 years, they would avoid the bright-line capital gains tax if they sold.
Rental Yield vs Growth: At $675/week rental, the gross yield was only 3.1% - lower than term deposit rates.
‘Tax-Free’ Income – Their mortgage interest payments were deducted against the rental income, but they had no more cash in pocket.
Diversification: Their wealth was heavily concentrated in one Auckland property.
Opportunity Cost: Could the $400,000+ in equity work harder elsewhere?
Family Goals: They wanted to upgrade to a larger family home and ensure their daughter's university education was funded.
Discovery and Option Generation
We met with the Liu family and looked extensively at three options. This was based on a property valuation at $1.15 million with a remaining mortgage of $580,000, - this equates to $570,000 in equity. The Liu family also had an additional $85,000 in savings. Learn more.
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The property earns around $35,100 a year in rent (a 3.1% gross yield) and would break even after expenses and mortgage payments. It would keep the Liu’s exposed to the Auckland property market, but the cash flow is tight and their portfolio remains highly concentrated there.
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Selling the property would free up around $540,000 after sale costs, which could be invested in a balanced growth portfolio targeting long-term returns of 6–7%. This approach could generate around $32,000–$38,000 in annual income, with better overall flexibility, lower risk, and stronger income potential.
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Our recommended approach was to sell the Mt Wellington property and use $190,000 as a deposit on a $950,000 family home. The remaining $350,000 was invested in a diversified portfolio, with the investment income helping to offset the new mortgage and balance both lifestyle and long-term growth.
Our Recommendation - Hybrid Approach [Option 3]
Taking our recommendations and analysis into account, in late 2024 fter a long Visa application process, the Lius parents also arrived in New Zealand in 2024. The family are glad to be reunited and have decided to all live in one home that the older parents are purchasing, so they can spend more time together. The Liu’s decided to sell their Mt Wellington property. With their growing family in mind, they moved into a larger home in Albany that better suited their lifestyle.
From the sale, they invested $350,000 in a balanced growth portfolio through our Wealth Management service, spreading their money across different investments to reduce the risk of having it all tied up in one property. This move also improved their cash flow — the portfolio now generates $24,000 a year, compared with a break-even rental income.
The Lius were also able to secure funds for their daughter’s future university education, and with professional management and regular portfolio reviews, they gained real peace of mind.
Their experience highlighted a few key lessons for property investors: low rental yields often don’t justify the risk and effort of property investment, spreading money across different investments reduces risk, timing and tax planning can make a big difference, and investment decisions should always match life stage and family needs.
By seeking professional guidance, the Liu’s made their decision with confidence, improving both their lifestyle and long-term financial security.
Every family’s situation is different, and everyone has a unique comfort with risk, goals, and priorities. The Liu’s story is just one example of what worked for them — it’s not a blueprint for everyone. That’s why talking to us matters.
We can take the time to understand your circumstances and help you make decisions that truly fit your life, rather than trying to follow someone else’s path.
Led by Amy Eriksen | Your Financial Adviser
Amy is our lead Financial Advisor and Director at EriksensGlobal with previous experience in corporate investment strategy and in actuarial analysis for both family estates and separating couples. She has advised on multi-million dollar investment strategies for organisations throughout oceania.
Amy served for two years on the Board of a budgeting charity, so is no stranger to both sides of the wealth divide. She combines evidence‑based investing with practical advice across portfolios, cashflow, KiwiSaver, retirement, and property.
By combining her fresh perspective with EriksenGlobals’ 30 years of trusted expertise, Amy is helping to shape a new standard; one where advice is truly independent, transparent, and tailored to your legacy.
Amy listens carefully and strives to add value with each interaction. She cares deeply about meeting your expectations and has access to an exceptional team that can meet your future goals, whatever they are.
Let’s chat. We’re here to make your financial goals happen.
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