Sharechat Logo

Household net worth holding up

Thursday 2nd October 2008

Text too small?
New Zealand household net worth dipped slightly by $6,700 or 1.7% during the June 2008 quarter according to Spicers' latest Household Saving Indicators report.

This comes after small decreases of $6,400 for the March 2008 quarter and $1,930 for the December 2007 quarter.

Spicers chief Gordon Noble-Campbell says for most New Zealand households, the decline needs to be put into context with the very high gains they have enjoyed over recent years.

"Despite the volatile economic times we're currently experiencing, the average New Zealand household net worth is $380,574, up $148,074 over the past five years."

"Most households are in a strong financial position with only some belt tightening required to get through the current uncertainty."

On the other side of the ledger, the quarterly growth in liabilities has slowed to 1.1%, the lowest increase since the September quarter of 1998. The annual rate of growth has slowed to 8.6%.

Noble-Campbell says this is well down from the housing boom peak of 16.4% for the year ended June 2004.

"New Zealanders are taking positive steps to manage their debt as they reduce consumption fuelled borrowing based on rising house prices."

"Households are wisely much more wary of taking on new debt in the current economic climate."

Financial assets increased by 0.4% as households move to less volatile income assets such as cash, term deposits and cash PIE funds.

Noble-Campbell says this is encouraging, particularly if the trend strengthens.

"With more than 80% of our wealth tied up in residential housing, it's great to see more New Zealanders starting to value the benefits of diversification by investing in a wider range of financial assets."

"Also, on the upside, is the potential for "cashed up" investors to return to equity markets when the recovery comes with the possibility of picking up some bargains on the way," he says.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

30th November 2021 Morning Report
Serko Limited (NZX: SKO) Announces Opening of NZ$10 Million Retail Offer
Rua Bioscience Limited (NZX: RUA) Rua to Accelerate Growth with Proposed Acquisition of Zalm
The New Zealand Refining Company Limited (NZX: NZR) Successfully Completes Placement
NZME Limited (NZX: NZM) Acquires BusinessDesk to Supercharge Digital Growth
Cannasouth Limited (NZX: CBD) Acquisition of Outstanding Stake in Cultivation JV Complete
Geneva Finance Limited (NZX: GFL) Half Year Results
The New Zealand Refining Company Limited (NZX: NZR) NZ announces equity raising
Asset Plus Limited (NZX: APL) Result for the six months ended 30 September 2021
Me Today Limited (NZX: MEE) 30 September 21 Results and Conditional Placement