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

2040 Target And Lower Standards: “Swimmable” Rivers Five Times More Likely To Make You Sick

Forest & Bird has condemned the government’s new water quality standards, warning New Zealanders that they lock in current levels of water pollution and allow for a 5-fold increase in the chance of getting sick from swimming in a river.

“Despite an explicit assurance from Minister Smith that the new water standards would provide for human and ecosystem health, he has failed to deliver on either of these things,” says Forest & Bird CEO Kevin Hague. More>>

 
 

Mayor: 750 New Social And Affordable Homes For Wellington

The next stage of Wellington’s Housing Upgrade Programme will see at least 750 new units of social and affordable housing built over the next decade, Mayor Justin Lester has announced. More>>

ALSO:

22/2: Christchurch Quake Memorial Unveiled

A city, a region, a nation and an international community impacted by the Canterbury Earthquakes will come together to mark the sixth anniversary of the deadly quake and dedicate Oi Manawa Canterbury Earthquake National Memorial. More>>

ALSO:


November Quakes:

Gordon Campbell: On The Mana-Maori Party Deal

If the self-interest involved wasn’t so blatant, the electorate deal between the Maori Party and Hone Harawira would be kind of poignant. It’s a bit like seeing the remaining members of Guns’n’Roses or the Eagles back on the road touring the nostalgia circuit… playing all the old hits of Maori unity and kaupapa Maori politics. More>>

ALSO:

Private Provision: First Social Bond To Focus On Mental Health

New Zealand’s first social bond will help around 1700 people with mental illness into work, Finance Minister Steven Joyce and Social Investment Minister Amy Adams say. More>>

ALSO:

Immigration: Short Reprieve For Nine Indian Students

A temporary hold on deportations of nine Indian students is a step in the right direction but the Government urgently needs to implement safeguards to stop further injustices to more international students, the Green Party says. More>>

EARLIER:


Megaupload Case: High Court Rules Dotcom, Co-Accused Eligible For Extradion

Internet entrepreneur Kim Dotcom and his three co-accused are eligible for extradition to the United States, New Zealand's High Court ruled... Justice Murray Gilbert upheld a decision by the District Court that there were grounds for Dotcom, Mathias Ortmann, Bram van der Kolk and Finn Batato to be extradited. More>>

ALSO:

PREVIOUSLY:

Port Hills Fire: Midday Update, Monday 20 February

• 9 homes destroyed
• 2 homes with partial damage. Damage includes things like cracked windows, heat damage.
• 3 properties with damage to other external structures e.g sheds or outbuildings More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news