Latest news with #NewZealanders'
Newsroom
20 hours ago
- Business
- Newsroom
New Zealanders urged to break up with property
Is it time to consider selling your property investments and put the money into assets that actually grow the economy? One investment expert says New Zealand would be a lot better off if such a change were to occur. Jeremy Williamson, head of private wealth and markets at Craigs Investment Partners, said there was momentum building for a move away from a 'love affair with property and property investing'. 'We think that's great for a number of reasons. New Zealand is always going to have an affinity with property investment but there are so many benefits for us as a country if we can turn the dial away from it, into more productive parts of the economy.' He said property investment was not the most efficient way to help create a better life for the next generation of New Zealanders. 'What does it do on a national scale for us if we're just buying and selling houses back to each other to create wealth? I don't necessarily believe for the collective it works.' He said New Zealanders' knowledge about investing in other assets was growing. 'If you put $100 into a New Zealand house 30 years ago it would be worth nearly $600. If you put it in New Zealand shares, it would be $1100.' He said people had favoured property investment for the reassurance of being able to 'touch and see' it, but that was changing. 'There is a whole generation of people who got burnt in 1987 in the sharemarket crash. But the reality is that generation is starting to pass and there is a new generation of people coming through that have had a really positive experience in asset classes outside property.' He said the ability to leverage a property investment – borrow money from the bank to buy a house with only a 30 percent deposit, for example – would also make it appealing. But he said if even 10 percent of the money being invested into property went into other assets, it would make a big difference. 'We over-allocate to property, we're reinforcing inequality through investment in an asset class that isn't productive. We're inflating the asset class and putting it out of reach for the next generation. 'If we were to set ourselves an objective, we want a more productive economy, more opportunities for our kids, all that stuff, if we're allocating capital into more productive asset classes the tax take from that downstream is going to increase anyway.' He said there was also a conversation to be had about creating the right tax incentives to encourage that. 'It's worth discussing at a national level. A house can't grow an economy. Investing in productive, growing companies can change the economy for the good.' He said now could be a good time to realise property investments and put the money into other asset classes. Infometrics chief forecaster Gareth Kiernan said the average residential property investment return over the 10 years to March 2025 was 9.5 percent a year, including rents and capital gains. Morningstar said the per annum return of a typical aggressive KiwiSaver fund over that period was 9.34 percent. 'The worst 10-year stretch was the 10 years to June 2017 (8.7 percent per annum), and the best was the 10 years to December 2021 (14 percent per annum).' He said housing could be less central to investments in the future. 'The house price falls in 2022/23 have demonstrated that house prices are not a sure bet to always go up. 'Significant increases in insurance costs and local government rates mean that the operating expenses associated with rental property are much higher than in the past.' He said KiwiSaver had also made people more familiar and comfortable with financial investments. 'A lack of expectations about capital gains for housing is also likely to limit investor demand for property for some time yet. Poor housing affordability and low rental yields suggest limited room for house prices to be bid up significantly – and rising property values are a key component of property being an attractive investment.' Rupert Carlyon, founder of Koura KiwiSaver, said he agreed that New Zealand needed to move away from property. 'With the world moving into negative population growth in the next few years it will have massive implications on property prices. The dynamics for property don't look great over the next 10 to 15 years when you consider the potential for slowing to no population growth, falling real wages and higher interest rates driven by inflation.' He said Bitcoin had been the asset class that had delivered the best performance of the past decade. It had given investors a 45,000 percent return. 'However it is important to point out that during this period it went from being a small speculative asset class to gaining acceptance into the mainstream. That is evidenced by the launch of the ETFs the inclusion by governments of Bitcoin in their reserves. 'While it is highly unlikely that we see this type of growth again – it is important to point out that Bitcoin is still a small asset class compared to others. With a market cap of US$2.4tr it is only 10 percent of the value of gold, just over 50 percent of the market cap of Nvidia and tiny compared to the value of the real estate market. If adoption continues we expect to see some of these gaps close. 'Though while less risky than it was a few years ago, risk still exists. It is important that investors remain diversified and don't place all their bets on any single asset or asset class because history shows assets will always move in cycles.'
Scoop
a day ago
- Business
- Scoop
New Planning Tool Tests How Zoning Changes Can Reduce Future Flood Risk
A new land-use model, funded by the Natural Hazards Commission Toka Tū Ake, gives planners a powerful new way to explore and test how different policy and investment decisions could reduce flood risk—before putting them into practice. Developed by Dr Robert Cardwell of Market Economics, the model allows users to test the knock-on effects of different flood policy settings in a virtual environment. 'Urban planning decisions are hard to reverse,' says Dr Cardwell. 'Once zoning rules are applied and infrastructure is built, the consequences last for decades. Our model helps avoid a situation where, 10 years after a development is approved, a major flood hits and people ask, 'Why was this allowed in a floodplain?'' While the model doesn't forecast exactly how many homes will be built in specific places, it helps planners and decision-makers understand the drivers behind urban development, anticipate where future risks may emerge, and test options for reducing those risks. With 12% of New Zealand's housing stock located in flood hazard areas—mostly in urban centres, and particularly in Auckland and Canterbury—this work comes at a critical time. Housing continues to be built on flood-prone land, often without enough risk mitigation. To test the model, Cardwell used Auckland as a case study. He applied floodplain data to simulate a future where urban land in flood-prone areas was rezoned as Discretionary—the second most restrictive category. Over a 50-year period, this policy setting led to significantly less development in high-risk areas, including: 1,200 hectares (19%) less of lifestyle block development 300 hectares (11%) less standalone housing 86 fewer (23%) terraced housing developments 'These changes reflect a wide range of factors,' explains Dr Cardwell. 'Things like neighbouring land use, terrain, accessibility, zoning, population growth, and time since last land use change all influence where development goes.' The model also suggests that restricting development in risky areas doesn't mean development stops altogether. 'In the Auckland scenario, nearly 75% of the development that couldn't happen in flood-prone zones shifted to nearby areas with lower flood risk,' says Cardwell. Dr Wendy Saunders, NHC's Smarter Land Use Planning Champion, says the tool is a valuable step toward balancing risk-based decisions with the ongoing demand for housing. 'Smarter land-use decisions can help us avoid disasters that are often entirely predictable,' she says. 'No model can perfectly predict future technologies, policies or immigration patterns, but tools like this can help councils and decision-makers determine the most suitable policies for their communities.' Next, Cardwell hopes to integrate economic and transport models alongside the land-use change model. 'With more parameters, we could start to compare the immediate economic impacts of frequent flooding with different development choices over long-term, ultimately helping reduce New Zealanders' homes to future natural hazards.' The Natural Hazards Commission Toka Tū Ake exists to help New Zealanders prepare for and recover from the impact of natural hazards. One of the ways we do this is by providing natural hazards insurance for homes and residential land.
Otago Daily Times
2 days ago
- Business
- Otago Daily Times
NZ 'back on course', govt says
By Russell Palmer of RNZ The government has launched a defence of its record on tackling the cost of living. Finance Minister Nicola Willis joined Prime Minister Christopher Luxon at the Beehive Theatrette for the weekly post-Cabinet briefing. She spent much of the previous week facing questions about her meeting with Fonterra chief executive Miles Hurrell. Luxon said this week marked a full year since the tax bracket changes National campaigned on had come into effect. "It's only through a strong economy that wages rise faster than inflation, that Kiwis can get ahead of their daily costs and our businesses can take risks that can mean that they can invest, grow, and create more jobs," he said. He directly targeted National's main rival in opposition. "Other parties in Parliament believe that raising taxes, growing the public sector, and giving more handouts to those who refuse to work is the answer. Taxing more, spending more, and borrowing more as Labour and others advocate for didn't work in the past and it won't work in the future." The government's decision to increase fees paid to board members on Crown entities - in some cases up to 80 percent - may undercut the messaging that National is prioritising low and middle-income New Zealanders' interests. But Luxon today pointed to the building products changes announced over the weekend, and the proposed ban on payment surcharges as recent examples. He then pointed to other items in the government's agenda, including: the current pipeline of infrastructure projects, Roads of National Significance, completing the City Rail Link, signing trade deals with the United Arab Emirates and Gulf Cooperation Council, starting negotiations with India, the digital nomads visa, and the Investment Boost policy. Willis soon picked up the baton, rattling off her own list of changes the government had made which she said had helped lower costs, including: the Family Boost policy, ending the Reserve Bank's secondary mandate to account for unemployment, curbing government spending, changing residential tenancy laws, tax deductability changes for landlords, delaying the previous government's petrol excise increases, scrapping the Auckland Regional Fuel Tax, increasing rates rebates for seniors, increasing Working for Families support, and extending maximum subscription lengths. She said National had campaigned on tackling the cost of living crisis, and pointed to rising GDP per capita and wages rising faster than inflation as a result of the government's interventions. "Taking the pressure off inflation - that is the general level of price increases across the economy - helps with the cost side of the cost-of-living equation. Lower inflation means less pressure on prices... it's pleasing to say that wages are now growing faster than inflation and forecasts show this trend continuing over the next few years." She said the government's tax changes meant "households have benefited by an average of $60 a fortnight". The change to interest deductibility for landlords had helped to take the heat out of the rental market, she said, noting "the 2.6 increase for the year to June was the lowest since 2011". She said the government was also making big structural changes, saying "the last government conclusively proved that band aids are not enough" and pointing to a series of policies yet to come to fruition: the Going for Housing Growth policy, Fast-tracking renewable energy consenting, work to address supermarket competition, and to curb council rates increases. "Economies are like oil tankers, you can't turn them around on a dime. But New Zealand is back on course," Willis said. The lists of government achievements kept coming, with Willis also pointing to: education reform, the investment boost (again), promoting global trade and investment, changes to the research and development sector, and "delivering infrastructure projects faster and better". Meanwhile, a Cabinet Office Circular reveals the government signed off on increases to fees available to board members of Crown entities. This includes increases of 30 percent for Group 2 and 4 boards and Audit and Risk committees, and an increase of 80 percent for Group 3 bodies. Luxon said the public sector director fees "have got completely out of whack compared to private sector fees". "Obviously we will never pay as much as someone in the private sector but when you are spending $32 billion on healthcare for example, it's important that we are actually able to attract really good governors for the Health NZ board, for example," he said. The changes took effect at the start of July.
IOL News
3 days ago
- Sport
- IOL News
Aseza Hele's brace not enough to foil Black Ferns XV as Bok Women fall short at Athlone
Springbok No 8 Aseza Hele was hugely impressive for the home team by scoring two tries against the Black Ferns XV at Athlone Stadium on Saturday. Picture: Henk Kruger Independent Media Image: Henk Kruger Independent Media SPRINGBOK Women No 8 Aseza Hele powered over for a brace of tries, but it was not enough to deny the Black Ferns XV a 36-24 victory in the historic clash at Athlone Stadium on Saturday. A strong home crowd came out in support of the Boks in the first-ever contest against their Antipodean rivals on South African soil. It was a clash of styles from the outset with the New Zealanders' trademark high-tempo attacking running game up against the forward-dominated Boks. The visitors ran in six tries to the Boks' four, with the opener coming after just two minutes through fullback Mererangi Paulto, to sound an ominous warning. But to the Boks' credit, they played with plenty of spirit and endeavour, with hard-running Hele hugely impressive. The dreadlocked blonde backrower made plenty of metres every time she had the ball under her arm, pulling in a host of Black Ferns XV defenders to bring her down each time. Black Ferns XV centre Hollyrae Mete-Renata dives for a try in her team's victory over the Springbok Women at Athlone Stadium on Saurday. Picture: BackpagePix Image: BackpagePix Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The visitors failed to do so in the 20th minute, when after the Bok forwards had steamrolled the Black Ferns XV at scrum time to win a heal-against-the-head, the home side managed to set up a maul for Hele to power over for the first of her two tries. Unfortunately, the Boks' discipline let them down at crucial moments with lock Vainah Ubisi and centre Eloise Webb being sent to the bin for infringements. The Black Ferns utilised the numerical advantage to full effect with winger Jaymie Kolose intercepting a loose pass to run in for an easy five-pointer before hat-trick hero and Player of the Match Kelsey Teneti dotted down for her first try. Hele, though, struck back for the Boks after another strong maul with her second try to reduce the deficit to just three points. Webb's yellow card, though, saw the Boks' rush defence disorganised with the Black Ferns XV able to exploit the extra space out wide with Teneti scored her second try of the half to allow the visitors to take a 20-12 lead into the halftime break. The Boks would have hoped to rebound after the interval, but it was the Black Ferns XV that blitzed the home side with a double strike through centre pairing Hollyrae Mete-Renata and Teneti that put the visitors out of sight. To Swys de Bruin's team credit, they never rolled over with the Boks lifting their intensity after Nadine Roos moved to scrumhalf for the remainder of the match. Roos' livewire presence at the base of the scrum put the marauding Boks forwards on the front foot, as she popped up the ball for the front rankers to punch holes in the Black Ferns XV defence. The home side were rewarded for their efforts with captain Babala Letsha and Nombuyekezo Mdliki barging their way over - much to the delight of the rousing home support. The Boks and the Black Ferns XV will go head-to-head again next weekend at the same venue in the second and final match of the series. Scorers: Springbok Women 26 (12) – Tries: Aseza Hele (2), Babalwa Latsha, Nombuyekezo Mdliki. Conversions: Jakkie Cilliers (3). Black Ferns XV 34 (20) – Tries: Mererangi Paul, Kelsey Teneti (3), Jaymie Kolose, Hollyrae Mete Renata. Conversions: Hannah King (2).
RNZ News
5 days ago
- Health
- RNZ News
Doctors welcome health minister's GP training funding shake-up
Royal New Zealand College of General Practitioners president Dr Samantha Murton. Photo: Supplied Doctors are welcoming the government's move to fully fund specialist GP training. Previously, medical graduates only had their first year of specialist general practitioner training paid for, but now all three years would be covered. The government would also cover the exam costs for about 200 trainees, and full education costs for about 400 year 2 and 3 trainees each year. President of the Royal New Zealand College of General Practitioners - which delivers the 'General Practice Education Programme' - Dr Samantha Murton, said the changes brought GP training in line with all other medical training across New Zealand and Australia. "This funding will be a gamechanger for current and future trainees. This is a significant acknowledgement for the specialism of the general practice workforce and the vital role we play in healthcare being as important as those of our peers in secondary hospital settings. "Not only will this funding offer the necessary financial support our GP registrars need throughout their training, but we are optimistic that the news will encourage medical graduates who have an interest in general practice but have been put off by the financial barriers to make the step to train as a specialist GP. To them, I say welcome and you won't regret your decision." Chief executive Toby Beaglehole said the college was enthusiastic that primary care funding was heading in the right direction. "We are focused on building a sustainable workforce for the future , which starts with training and the equitability of our program costs to other specialist medical training. "This funding sends a signal to the sector that the expertise of general practice is valued as a vital part of the health system." Announcing the changes at a GP conference on Friday, Health Minister Simeon Brown said they would help improve New Zealanders' access to primary healthcare . Health Minister Simeon Brown. Photo: Calvin Samuel / RNZ He also announced the government's funding method for GP clinics, known as capitation, would be updated for the first time in more than 20 years, with changes taking effect from 1 July, 2026. "The current model is outdated and doesn't reflect the needs of patients. The revised formula will go beyond just age and sex, to also include multimorbidity, rurality , and socioeconomic deprivation," Brown said. "These changes will better distribute funding to where it's needed most, so that GP clinics with a higher needs population of enrolled patients will receive more funding to care for them." A new national health target would be developed with the primary care sector, proposing to ensure that more than 80 percent of people could see a primary care provider within one week. "People shouldn't have to wait weeks to see a doctor. Delays can lead to poorer health outcomes, more pressure on hospitals, and growing frustration for patients. We're focused on delivering timely, quality care that puts patients first." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
