The gift that keeps on giving

Central Otago gives people a lot in terms of lifestyle, but if you’ve started, grown or sold a business here, or bought a property that has skyrocketed in value over the years, you’ve also benefited financially from being in this region. So what are you going to give back? And how can you play a role in its future? 

Surveys suggest around two-thirds of New Zealanders donate to charity, and a recent study ranked us the 17th most generous country in the world. At Forsyth Barr, we support a number of national organisations, but we are also big advocates for more regional philanthropy, and each of our offices supports a range of local causes. In Central Otago, we’re behind the Trails Trust, Kahu Youth, MAC Foundation and Snow Sports NZ, and we also help our clients to give back - and that applies to foreigners with a few million or locals with a few thousand. 

We deal with a number of applicants for the Active Investor Plus Visa and offer a product that makes it easy for them to reach the investment threshold, and the common sentiment from these applicants is that they don’t want to live in our land without giving back.

A lot of the investors are coming to live in Central Otago, so, in our view, they are a net positive for the region, and recent changes to the foreign buyer ban now allow these so-called ‘golden visa’ holders to buy or build one home worth at least $5 million. This is unlikely to affect prices at the lower end of the spectrum, but it could be a game-changer for farm values, increase the competition for high-end real estate and help keep the local trades busy with big builds. 

As we have seen time and time again, successful foreigners who end up living in the region also tend to invest in the community. Whether it’s the Brainerds and their sustainable tourism demonstration project at Headwaters in Glenorchy, the regeneration work of the Tusher family at Blanket Bay, Mutt Lange and Shania Twain planting millions of natives in the Motatapu and Mt Soho stations, or Rick Kayne redeveloping The Hills, the benefits are clear. While Rod Drury is a New Zealander, he is a good example of someone who has used his wealth to benefit the region by investing in a range of local businesses and helping to fund public infrastructure (like an electric boat charger at the Frankton marina or a range of trails). 

Private philanthropy is a lot bigger in the US than New Zealand - as is the level of wealth - and giving back to schools, conservation, or the arts is common for those with a few extra commas on their bank balance. We have traditionally had a stronger reliance on public funding and a bigger social safety net, but there is a growing funding gap that now needs to be filled. 

It’s not all about the top end of town, however. Many of our clients may have built up wealth over their lifetime, achieved their goals, set up their families and have some money left over. We offer assistance to them as well and ensure that the money can be used effectively long after they are gone. 

Central Otago’s average age and income are higher than those of most other regions, so this is perhaps a more pertinent issue here. As the Baby Boomers start retiring, one of the greatest wealth transfers in history is now underway, and we have seen firsthand that early planning is essential. It can be a shambles when a patriarch or matriarch dies and no one has a clue what’s going on, so just as we advocate for better long-term thinking to cope with the region’s future needs, we also advocate for long-term thinking when it comes to where you want your money to go and what causes you want to support. 

The risk with giving one big sum to a charity upon your death is that it could all be spent in a couple of years. Instead, we can capture your wishes, manage the funds and pay out smaller amounts to chosen organisations over time.  

We manage the funds for a wide variety of community organisations and foundations, all with the sole purpose of giving back to their local communities. And for those with specific charitable interests - whether it’s affordable housing, animal welfare, or even golf - you can decide exactly where to direct your money. No matter how much you’ve got to allocate, we can ensure your legacy lives on through giving.

To talk investment - either for yourself or the region – get in touch with us at Forsyth Barr Investment Advice Central Otago on 03 443 2980.