Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Increase in the Official Cash Rate may impact older renters

The recent increase in the Official Cash Rate may impact older renters.

Age Concern New Zealand Acting Chief Executive, Robert Ross says that “the recent increase in the Official Cash Rate and its consequent impact on mortgage rates is likely to have a long-term affect on older New Zealander’s occupying rental property.”

Almost 20% of over 65 year olds occupy rental property. Those who rent and are also on a fixed income are in all likelihood, the most affected in the long term by this increase, as rents tend to rise with mortgage rate increases.

Renters are not the only ones affected however; “Any increase in interest rates will be unfavourable to those superannuitants who have a mortgage, as the mortgage rate will undoubtedly increase. The combination of an ageing population and rising house prices means there are a growing number of retirees in this category,” says Mr. Ross.

On the other hand, any increase in interest rates is good news for older New Zealanders who have savings.

Approximately 20% of retirees live mainly on NZ Superannuation plus a small amount of savings. Those retirees that do have additional savings will welcome the rise in interest rates

Although, if their savings are invested in a fixed term deposit, they will have to wait until the fixed term matures, before reinvesting at a higher rate.
Approximately 40% of retirees live on NZ Superannuation alone and have no savings, so will not benefit from the recent increase in savings rates.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news