‘Mum and dad investors’ are savvier than you think – and you should see their kids

If you’ve been reading the news these past few weeks, you’d be forgiven for thinking it’s doomsday for small-scale property investors in New Zealand right now – the ones often referred to as ‘mum and dad investors’. Some of the headlines have even suggested over-leveraged landlords are shedding their assets in a frenzy.

Fact: it’s not true and isn’t helpful to suggest it is.

My team and I work with 2500 property investors in Hamilton and they’ve been battening down the hatches for a long time. They’re playing a long game, have diverse investment portfolios and their expectations are in check about capital gains. They’ve also embraced new tenancy laws without a hitch, because when you’re in it for the long haul, it makes sense to create conditions conducive to long and stable tenancies.

Of course, no one loves a recession, and sadly some investors have been forced to sell in recent years. But it’s the exception, not the rule and I believe there is something deeply problematic about scaring away everyday New Zealanders from property investment.

A rebrand would be a good place to start; the term ‘mum and dad investors’ infers a level of amateurism which is far from the truth. It also fails to distinguish them from those who dipped into play the property game for quick gains in the pre-pandemic glory days and have since vanished.

The ‘mums and dads’ who have invested in bricks and mortar and remain in the market have stuck around because they’ve done their homework, received expert advice and know it still stacks up as an investment in the long term. This is especially so in a growing city like Hamilton, where renters are increasing as a proportion of the population every year. As a society, we’d do well to support these ‘mums and dads’ to stay the course right now, creating a stable and more resilient rental market.

We’d also do well to support their kids, hot on their heels and leaving school with more financial nous than you could shake a stick at. They’re sophisticated, strategising about their investment portfolios long before receiving their first paycheck.

And it’s not just talk. Many of them have been playing on Sharesies since they were kids and use the ‘auto invest’ setting as soon as they start earning.

Naturally, they've had access to information a pre-internet generation could only have acquired through years of industry experience or study, but what really stands them apart is their discernment; they know what online content to trust and how to piece it all together and put it into action. In a knowledge-rich world, this is the stumbling block that is often hard to overcome.

The kids who are informed and taking action have been watching and listening closely to their parents for years. Unlike their peers, they’re not just talking smack in the schoolyard, they’re walking the talk; taking baby steps as soon as they enter the workforce, reserving some of their salary for investing. This is their ‘normal’ and it signals a massive generational shift.

They’re in this position because their parents have likely led by example, modelling a lifelong approach to investment, which includes but isn’t limited to property, rather than falling victim to hype and trending schemes. They’ve likely talked about interest rates hikes and tenancy issues and provided a very realistic glimpse into how a property portfolio needs to be engineered to perform across economic cycles.

In many ways, these ‘mum and dad investors’ have been circuit breakers, spurring a more professional approach to being a landlord, which is becoming the new norm. They’re data-driven, active in the management of their properties and mindful of the tenant experience, or they’re delegating all of this to professional property managers. Ultimately, they're doing this is because it’s what the market now demands - and what will set them up for future gains.

To conclude, when managed professionally and to a high standard, property continues to prove itself as a robust and reliable investment, particularly in Hamilton, where demand is high. By backing ‘mum and dad investors’ and the savvy younger generation following in their footsteps, we’re not just nurturing individual wealth, we’re helping to secure the stability and resilience of our housing market for years to come. While the days of quick fortunes may be behind us, property offers steady growth and security.

How property investors are making it work in 2026

• Long-term mindset – not chasing fast capital gains but focused on steady growth over 10-20 years.
• More hands-on – see property as something to optimise (tenants, rents, upkeep), not set-and-forget.
• Data-driven – seek out and make decisions based on robust research, statistical data and expert advice rather than gut feel.
• Tenant-aware – understand tenant retention matters more in a tighter, slower market.
• Risk-conscious – assume interest rates, costs, and shocks will fluctuate.
• Yield-aware – buy based on rental return and cashflow, not “it’ll go up in value in the next few years”.
• Highly leveraged (but aware of it) – make very careful and considered decisions.