Best Time in 4 Years for First Home Buyers and Should High-Income Over-65s Still Get NZ Super?

Topic #1:  RNZ 25th of June - Thousands of over-65s earn more than $200,000 - should they get NZ Super?

Topic #2: Good Returns 25th of June -Never a better time in four years for first home buyers

Topic #3: RNZ 25th of June -Removing red tape key priority for FMA - report

Topic #4: Corelogic 26th of June - A good time to get that extra bedroom?

Topic #5: 1News 26th of June - How bad can your credit score get before it's a problem?

Transcript

 Hi everyone. I'm Debbie Roberts, owner and financial adviser at Property Apprentice. Join us today for the week review where I talk about current events for the everyday investor and home buyer. Our topics for this week. Topic number one, from   📍 RNZ on the 25th of June. Thousands of over 60 fives earn more than $200,000 a year should they get New Zealand Super.

 Topic number two, from   📍 Good Returns on the 25th of June. Never a better time in four years for first home buyers.  Topic number three from   📍 RNZ on the 25th of June. Removing red tape: key priority for FMA - report  topic number four from   📍 CoreLogic on the 26th of June. A good time to get that extra bedroom.

 And topic number five   📍 for this week in review from one news on the 26th of June. How bad can your credit score get before it's a problem?  

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So first up for this week, in review from RNZ on the 25th of June, thousands of over 60 fives earn more than $200,000 should they get New Zealand super. According to 2023 census data, over 9,000 New Zealanders aged 65 and older earn more than $200,000 annually, while another 33,000 earned between a hundred thousand and $200,000.

These figures have sparked renewed debate over the fairness and sustainability of providing New Zealand superannuation to high income retirees. Despite some shifts in income brackets, fewer people now earn 150 to $200,000 than in 2018, but more earning a hundred to $150,000. The number of over 65 still working has also risen.

About 24% of this age group remains in the workforce up from 22.1% in 2013 with the sharpest increase seen in those aged 70 to 74. Retirement Commissioner Jane Wrightson acknowledge the sensitivity around means testing, but argued that if reducing the cost of New Zealand super is the goal, all options, including income testing should be on the, table.

She noted. It may be time to question whether it's a appropriate for people earning over 180,000 to also receive New Zealand Super, even if such a change would complicate the system and require a broader reform package. Wrightson emphasized the importance of addressing fairness and affordability through a comprehensive cross party approach

rather than isolated policy shifts like simply raising the age of eligibility. Associate professor Susan St. John of the University of Auckland has proposed treating New Zealand super as a tax free basic income grant offset by placing higher income recipients in a higher tax bracket. Her model aims to create a breakeven point where wealthier individuals would voluntarily opt out of super to avoid a tax disadvantage.

Avoiding the harsh benefit clawback seen in other systems. Simplicity economists Shamubeel Eaqub added that adopting means testing similar to Australia's could reduce New Zealand's super eligibility to around 60% of the population and save the government up to $9 billion annually. The current median income for those aged over 65 is $26,600.

By contrast, 74,850 Working age New Zealanders, that's aged 30 to 64 now earn more than $200,000 annually. So let let us know what your thoughts on this are. Do you think it would be fair to have income testing for qualifying for the New Zealand superannuation? Let us know. 

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Topic number two, from Good Returns on the 25th of June.

Never a better time in four years for first time buyers. Declining house prices and interest rates, or improving mortgage affordability prompting more first time buyers to enter the property market. According to the latest REINZ Data, that's Real Estate Institute in New Zealand. The lower quartile house price dropped from $599,000 in April to $580,000 in May.

This segment typically dominated by first home buyers has seen a 13.4% decline, or $90,000 since national prices peaked at $670,000 in late 2021. At the same time, mortgage rates have fallen by about 2%, reducing monthly repayment burdens, and improving access to financing. CoreLogic's Chief Property Economist Kelvin Davidson, noted that first home buyers accounted for nearly a quarter of all property purchases nationwide between January and April, 2025, and that's above the long term average of 21 to 22%.



Reserve bank data also shows that 44% of first time buyers had deposits below 20%. Banks are allowed to allocate up to 20% of new lending each month to borrowers with less than 20% deposit. Davidson explained that first home buyers are making the most of this window of opportunity in a buyer's market.

Many are unaware that a 20% deposit isn't mandatory, and that banks currently have room to accommodate more low deposit borrowers. He noted that around 75 to 80% of all low deposit lending has been directed to first time buyers. While some lenders apply a low equity margin, one major bank recently removed it, offering the same rates to all borrowers with discounts for those over 20% equity.

Davidson acknowledged that buying a first home remains challenging, but said that current environment is more favorable than in previous cycles. Although harm homes aren't cheap, they're more affordable than they were during the 2021 peak with prices now down 16.3%. Looking ahead, CoreLogic expects the market to remain relatively flat. While falling

mortgage rates may support prices, high listing volumes give buyers the leverage broader economic uncertainty, a slow labor market recovery, and stricter debt to income rules are also likely to keep growth in check. Like I've been saying for ages, I'm starting to sound like a broken record. It's a buyer's market at the moment, and the clues in the name.

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 Topic number three from RNZ on the 25th of June.

Removing red tape is a key priority for the FMA, according to the latest report. The financial markets authority, the FMA has released its first ever financial conduct report outlining key priorities aimed at improving outcomes for consumers and easing regulatory pressures for industry participants.

The report, which will be published annually, sets a forward looking agenda for the financial watchdog.

Among its top cross sector priorities are reducing unnecessary regulatory burdens and stepping up efforts to disrupt financial scams. The FMA noted that simplifying licensing processes would help reduce costs for financial service providers, allowing the regulator to focus more on areas that protect consumers.

That's a great idea. The report comes at a time of internal restructuring and job cuts within the agency. Despite the changes, FMA Chief Executive Samantha Barrass emphasized that enforcement capability would not be compromised. She acknowledged past feedback indicating the need for better industry engagement, and said that the FMA has since strengthened its communication efforts.

Barrass also stated that the regulator aims to strike a balance between education and enforcement, supporting firms that want to comply, but taking strong action against those that don't. Sector specific plans include reviewing how financial advisors interact with vulnerable clients, conducting proactive reviews of existing insurance products, and cracking down on misleading disclosures by wholesale issuers.

In the fund management space, the FMA will focus on ethical investment claims and safeguarding client assets.   📍  📍 If you'd like to learn more about investing in property, join me at one of our free events called How to Succeed With Property Investing. I'll discuss strategies for successful investing from my perspective as an experienced investor and a financial advisor, and all of our free events are available live and online.

Check out www.propertyapprentice.co.nz for upcoming dates and register today. We don't sell property. It's all about increasing your knowledge to reduce your risk.   📍  📍 If you've already been to one of our free events and would like to find out more about how we can help you to reach your financial goals, you can also book a no obligation phone call or meeting with my husband Paul Roberts, via the website.

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  topic number four from CoreLogic on the 26th of June.

A good time to get that extra bedroom. Upgrading to a larger home remains costly across New Zealand, but recent market conditions may offer a more favorable window for those considering a move. The cost difference or trade up premium between three bedroom and four bedroom homes still exceeds a hundred thousand dollars in many areas.

However, with house prices softening and mortgage rates falling, the financial gap has narrowed, making it potentially easier for homeowners to move up the property ladder. Using Cotality's market trends. Data, recent comparisons between mid 2023 and current figures show a general decline in the trade out premium across key regions.

In Auckland City, the premiums fallen by about 30, $32,000. It's about 5%, but still sits around $601,000 due to the concentration of high-end properties. Manukau ,North

 Shore and Rodney also remain expensive to upgrade in with premiums exceeding $300,000, although all have dropped year-on-year. On the other end, Dunedin and Upper Hutt have premiums below $200,000. In Franklin,

the trade up cost is slightly increased as four bedroom prices held steady while three bedroom prices declined. Beyond the main centers areas like Queenstown, Hastings, McKenzie, Waipa, Whakatane, and Western Bay of Plenty, all show premiums above $300,000. Meanwhile, Raupehu has the lowest at just under a hundred thousand with Clutha and South Waikato only slightly higher.

Notable decreases in the trade up premium of at least 10% were recorded in Central Hawke's Bay, south Waikato, Whanganui and Whangarei The far Northern Hastings saw the biggest declines in dollar terms. However, South Wairarapa saw an increase of around $15,000 driven by falling three bedroom values. So what does this mean for potential movers?

Although the financial hurdle to upgrade remains high, the decline in trade up premiums paired with falling interest rates and lots of listings could make this a pretty good time to consider moving up. In Wellington, for example, the premium dropped from a peak of $284,000 in 2021 to under $240,000 now.

While individual circumstances vary and many upgraders still need to sell before buying ,market conditions, suggest that this could be a good time for owner occupiers to reenter the market. Data shows that movers have been quieter in recent years despite life events like family changes continuing. This shift in affordability could signal increased activity in the months ahead.

Topic number five from One News on the 26th of June. How bad can your credit score get before it's a problem. For individuals with a poor credit score, the prospect of securing a home loan can feel quite daunting. A credit score reflects how reliably someone has managed credit in the past and how likely they are to repay future debts.

It's based on various factors including payment history, credit usage, account age. Types of credit, recent credit inquiries, and any defaults or insolvencies. In New Zealand credit scores attract by three major credit Bureau Centrix one of them, scores individuals from zero to a thousand. A score below 496 is considered poor with roughly 10% of the population in that category, and that makes it difficult to get a loan.

Scores under 299 are deemed low. While those between three hundred and four ninety nine are seen as needing improvement, even those with scores in the mid range might only qualify for loans with strict conditions. What credit score do banks accept? Squirrel Mortgage Advisor David Cunningham, noted that banks generally start considering home loan applications from borrowers with scores around 420.

He pointed out that ongoing missed credit card payments are a common cause of low scores while one-off lapses tend to have minimal effect. Utility bills such as electricity and phone charges can also impact credit if left unpaid, especially if a final bill is missed after moving house. However, he said banks are often open to explanations when borrowers can provide context.

Key mortgages advisor Jeremy Andrews, explained that a score between 400 and 500 could be acceptable if recent financial behavior has improved. In contrast, a higher score paired with recent dishonors or overdraft issues could raise red flags. He added that while past late payments can often be explained, repeated delays on property related bills such as council rates may signal deeper financial trouble.

Link Advisory's Glen McLeod emphasized that banks consider more than just the credit score. They were review the full financial picture, including the nature cause and timing of credit issues. Life events such as illness or separation temporarily affect a score, and lenders may take those into account.

For borrowers who don't meet lending criteria, non-bank lenders could potentially offer an alternative, albeit they're often at higher interest rates, which offset the added risk. If you are thinking of buying your first home, trading up, or just making smarter moves in today's property market, including property investing, with house prices, stabilizing, mortgage rates falling, and more opportunities opening up, now's the best time to get informed.  📍  📍 

Join me at one of our free events called How to Succeed with Property Investing. These events are all available online and they're free, so you can gain valuable insights and strategies tailored to today's market conditions regardless of where you live, whether you're an experienced investor or just getting started.

This free session's designed to help you with the key tools and insights to make confident, informed decisions. Don't miss out. Register today and take the next step towards achieving your financial success. In our free events, I'll also tell you more about how we can help you as a client to achieve your investing goals.

So if you are interested in finding out more about what we do and how we could help you, visit www.propertyapprentice.co.nz today and register for one of our free events.   📍  📍 If you've already been to one and you'd like to know more about how we can help you on your journey book a no obligation free phone call or meeting with my husband Paul Roberts through our website.

That's www.propertyapprentice.co.nz.  Thanks for listening. 

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