Originally published in the Herald 29/06/25, by Darcy Ungaro
If Not Property, Then What?
Remember when a property was just a home? There was a time when a house wasn’t an “asset” but simply shelter for families. Fast forward, and now property is the investment of choice for most Kiwis, myself included, as a way to build wealth. Property investors provide long-term accommodation for those unable to buy, taking on personal risk in hopes that rising prices will justify it. But property returns aren’t linear, and the last few years have shown how quickly things can go sideways. When prices stall and the dream of doubling every seven years fades, we start questioning property as an asset. So, what’s better? Bitcoin?
Isn’t That a Scam?
I first heard about Bitcoin in 2012, when it was worth about $1. I dismissed it as ‘fake internet money,’ then as a scam, then as something only criminals used. Turns out, there’s more crime committed at the end of a rolled up $20 than Bitcoin. If you’re up to no good, cash is far better than a public blockchain. After digging deeper, I learned Bitcoin is engineered digital scarcity—money outside banks and government control. Could this be money for a digital world?
Most cryptocurrencies are digital startups, but Bitcoin is different. Born from the global financial crisis, it came with a mission: ‘Fix the money, fix the world.’ I wanted in.
Property vs. Bitcoin: Which Is Better?
The real question isn’t which investment is better, but which is better for you.
- How long can you invest?
- How much volatility can you handle?
- Are you after capital gains or cashflow?
Once you know your goals, you can pick your tools—property, Bitcoin, both, or something completely different. If you can save a deposit, property is still a solid way to grow wealth. Banks provide the leverage, tenants provide the cashflow, and government [still] might allow tax free capital gains.
But of course, let’s not forget the fact it comes with headaches: tenant issues, maintenance, rising interest rates, and the distinct likelihood future governments could try taxing gains. Bitcoin, on the other hand, just sits there—no cashflow, just digital scarcity.
The Dirty Secret
Property’s hard to beat on a good day, but here’s what most won’t say: New Zealand’s housing market thrives because of money supply inflation. Every time someone borrows, be it government, companies, or everyday people, banks create new money out of thin air.
The process of currency creation is the true source of inflation the politicians ignore, and your ‘normal’ financial adviser is ashamed to admit.
Immigration, limited ability to produce new supply, and labour shortages play a role too, but the real driver of rising house prices is something no one can solve. The NZ economy is a property market powered by a money printer. As long as this continues, and it has to, property investment works.
Swapping Bricks for Digital Gold—How Much?
Property works because banks create infinite money to buy physical scarcity. Bitcoin lets you swap your money for digital scarcity. How much should you allocate? Take your net worth (excluding your home), and consider putting 1–10% of that into Bitcoin. that’s not financial advice, at the very most it’s savings advice. Just remember, unlike shares or property, Bitcoin technically isn’t an ‘investment’, it’s a type of money engineered by people, who do their thing without government approval. The money created by RBNZ approval will lose value over time, but Bitcoin could rise as more people lose fail in the ability of our dollar to hold value. Some who understand are now going much further, and even selling their investment property for more Bitcoin.
Who Should Stick to Property—and Who Should Try Bitcoin?
After a while, you can begin to see that ‘volatility’ (aka wild price swings) are not, in fact a sign Bitcoin is ‘dangerous’ – it’s simply a byproduct of any early stage technology. If you can handle the ride, you have a long-term horizon (10+ years), and some wealth behind you, Bitcoin could be for you. If you prefer stability and something tangible however, property remains a strong choice – it’s not falling out of favor just yet. Both asset classes benefit from the fact that our dollars buy less over time. Property wins because the price of the home rises, and the value of the debt doesnt. Bitcoin rises because like any investment, most of the gains come from the process of credit creation (ie currency debasement). Property is still a reliable bet, but as the world digitizes, maybe digital property is the next frontier?
Personally, I hold property and Bitcoin (not enough!). I also use managed funds, shares in specific companies and precious metals.
For, it’s not about the tools, it’s about what I’m trying to build.
You do you, but a word to the wise: maybe learn more about Bitcoin, just in case it catches on.
