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Auckland skyline
If house prices crashed by 40%, what would the country look like?

Imagine, in this uncertain world, that house prices – those house prices that keep rising and rising and rising – finally run out of rocket power. Imagine, even, that they actually drop. Maybe 10%, maybe 20, maybe 40. Would that be economic doom for us all? Are people so deep in mortgage debt that a big fall might bring the whole New Zealand economy down with them? Hive News publisher and business commentator Bernard Hickey has been following our housing…

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Girl studying in library
Five financial things I learned while getting a degree I never used

You’ll often hear people say that you shouldn’t go to university unless you know what you want to study and how you’ll use it in a job later on. I disagree; I think all university study is useful in one way or another. It’s not just a degree  –  it’s a formative experience  –  and I personally don’t think it’s ever a waste of money, time or effort. But I’m speaking from the point of view of having got my…

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Southland
Southland the place to be (and buy) if you’re under 30 and looking to get into the property market

We’ve had a peek at some mortgage data to see how young Kiwis are getting on around the country with getting into home ownership. And it turns out young Southlanders are in the best place to get a foot on the property ladder, with double the success rate of under-30 home buyers in Auckland. Our data shows 8.3% of mortgagees in Southland are under 30, compared to a tiny 4.4% in Auckland. When it comes to property, young Southlanders are…

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Auckland
In the habit of ‘whacking it on the mortgage’? Start treating it like any other debt (and get ahead)

Need a new kitchen? Fancy that round the world trip? Just whack it on the mortgage. In 21st century New Zealand we extend the mortgage every time we have a bit of ‘spare equity’ built up. It’s like we’ve inverted the whole concept of borrowing and the aim of paying it off has disappeared out the window. If you don’t pay that mortgage down as you would other debt, you could be forced to work until you drop just to…

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It’s in the stars: Credit Simple’s financial horoscopes (November)

Aries Like fellow Aries Donald Trump, former Reserve Bank Governor Don Brash and Ron Howard from television’s Happy Days, you face a month of change and challenge. The main challenge? Finding enough change to make it through the day. Top tip: look behind the sofa cushions. Just ignore the old Doritos. Taurus Smashed avocado looms green and delicious in your short term future, Taurus. Tasty breakfast treat rich in good oils, or potent metaphor for Gen Y’s inability to prioritise…

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How to milk those rewards points

We Kiwis are suckers for rewards points. We’ll go out of our way to get a few extra points. But you’ve got to be careful to get the most out of the rewards points in the best way. It’s not just rewards points credit cards to be careful with. We have wallets full of little plastic and cardboard cards for everything from coffee to Fly Buys. But customer loyalty doesn’t always add up. Here’s the rub: rewards points do work is…

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Lotto balls in tubes
Idiot tax: Eight ways to waste your money

We all throw money down the gurgler. But some Kiwis have far higher chances of getting a Darwin Award for stupidity by paying too much idiot tax than others. Technically ‘idiot tax’ is spending on Lotto. Your odds of winning Powerball in New Zealand are 1 in 38 million per line. Yet the same money invested in a KiwiSaver growth fund from the age of 25 to 65 would add up to $128,000 after tax. Stop wasting your hard-earned money…

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New Zealand Notes and Coins
Complete cheapskate: How to conjure up money from nothing

Do you want to conjure money up from nowhere? It can be done. Cheapskates spend almost NOTHING. They pop to the toilet when it’s their round to buy the drinks and trawl local free sites for unwanted pet bunnies to eat. Well perhaps not bunnies, even though it’s been done. But here are some cheapskate ideas to ratchet down your spending big time before your debts affect your credit score: Become a Freegan. It’s amazing how much free food you…

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Man working out outdoors
Boost your savings with the Three Ts (track, trim, and target)

Saving is the worst. I cannot save money. I just can’t. I look at my payslip each month and take out the rent, the food, the car, the power, the water, the gas and there’s barely enough left to pay for the odd drink after work let alone save up for a deposit on a house or anything stupid like that. I know I was supposed to pay myself first but somehow that just never worked out. By the time…

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Couple unpacking boxes in home
The pros and cons of going guarantor

‘Going guarantor’ are two dangerous little words. “Nan, will you go guarantor on my car? You don’t have to pay any money.” Stop right there. Going guarantor can be a great way to help others out. But it’s way more risky than most people think. Read this article before you say yes or no. The worst-case scenario is that the lender comes after you for the money. Parents have lost their homes from going guarantor and families have been torn…

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