Boom times ending as debt rises

Tuesday 7 December 2004

The good news: the average household is $28,000 richer than a year ago. The bad: debt is rising faster than asset values.

By The Landlord

"The last 12 to 18 months has been a boom time for households," says Spicers chief economic adviser Rozanna Wozniak. Its Household Savings Indicators put national net worth at $352 billion.

But those boom times were coming to an end, with debt levels rising faster than asset values in the September quarter.

It would be unwise for households to keep borrowing in the belief their wealth would keep rising indefinitely.

The average household was now worth a net $234,000, up from about $206,000 in September last year, but if house prices fell next year, net worth might also dip, she said.


Housing accounted for 74 per cent of household assets, up from 60 per cent a decade ago, even though fewer people now owned their home.

Read More - Opens in a new window
Commenting is closed

Property News

Return to market form

There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Commercial

NZ proptech start-up scores major investor

Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.

Mortgages

LVR limits slow down investors

LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.

Site by PHP Developer