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Speaker 1: You're listening to the Saturday Morning with Jack Team podcast

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Speaker 1: from Newstalk z EDB.

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Speaker 2: It is quarter two eleven non Newstalk ZEDB Ed McKnight

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Speaker 2: as our money guy this week it is with us now.

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Speaker 3: Killed Eh, good to talk to Jack.

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Speaker 2: Yeah you too, so put us out of our misery.

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Speaker 2: How many millionaires are there in New Zealand?

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Speaker 3: It is outrageous and I almost fell off the chair

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Speaker 3: when I called up stats and Z. According to their numbers,

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Speaker 3: about four hundred and thirty nine thousand households, so individual

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Speaker 3: households around the country. Now we should clear up what

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Speaker 3: we mean by millionaires as well. We're talking net worths,

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Speaker 3: so that would be including your house minus you mortgage.

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Speaker 2: Yeah, I say there, that's I mean a million dollars.

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Speaker 2: Let's be totally honest. A million dollars isn't what it

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Speaker 2: was a couple of decades ago. I mean there's inflation

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Speaker 2: for you, right, but still that is a huge number

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Speaker 2: of millionaires. What about multimillionaires.

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Speaker 3: Well, when it comes to people with two million dollars plus, again,

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Speaker 3: I couldn't believe it. Ten percent of people in New

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Speaker 3: Zealand are multi millionaires worth two million dollars or more,

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Speaker 3: and a lot of that will be household wealth in

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Speaker 3: terms of somebody buying a house and as you've owned

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Speaker 3: it for fifteen years, it's probably gone up in value substantially.

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Speaker 3: You'll probably have paid off some of the mortgage. But

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Speaker 3: still those numbers. We sometimes tell ourselves in New Zealand that,

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Speaker 3: you know, we're not as rich as the Australians, the

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Speaker 3: Americans of British And when I looked at those numbers,

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Speaker 3: thinking that almost a quarter New Zealanders are living in

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Speaker 3: a millionaire household, I've started to change my mind to

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Speaker 3: but we are a rich country and there's a lot

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Speaker 3: of opportunity here.

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Speaker 2: So how did those people get their money?

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Speaker 3: A lot of it does come from housing, especially those

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Speaker 3: people in the kind of millionaire club one to two

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Speaker 3: million dollars one hit about the two million dollars in

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Speaker 3: closer to the three million dollar mark. A lot of

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Speaker 3: those people housess and may not even count their houses,

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Speaker 3: may not even count towards these numbers. So it starts

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Speaker 3: to be from business.

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Speaker 2: Wow, that's interesting. Yeah, I mean that the housing makes

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Speaker 2: kind of a lot of sense. And I suppose when

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Speaker 2: you're talking about net worth as well, like people's kind

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Speaker 2: of assets have appreciated a huge amount in recent years.

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Speaker 2: But yeah, the business kind of distinguishes people. So what

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Speaker 2: does this actually mean though? Is there you know, how

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Speaker 2: do we how do we you know, how do we

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Speaker 2: shake down compared to other parts around the world, And

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Speaker 2: what does having this wealth actually mean for us?

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Speaker 3: Well? I think the main thing for listening to the

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Speaker 3: show is I was just in giving a seminarchal group

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Speaker 3: of multi professionals and I was trying to use these

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Speaker 3: numbers to show that there is actually money out there

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Speaker 3: and we can be a little bit more aspirational. And

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Speaker 3: the issue that I sometimes come up against is that

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Speaker 3: New Zealanders often don't like to talk about their money,

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Speaker 3: and especially those people with money often don't like to

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Speaker 3: talk about it. But we don't want to throw it

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Speaker 3: in each other's faces. We don't want to make people

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Speaker 3: feel bad that, you know, some people have money and

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Speaker 3: others in society are doing it really really tough. At

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Speaker 3: the moment, Clair broken a little bit and says, actually

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Speaker 3: making a decent amount of wealth is possible in this country.

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Speaker 2: Yeah, and you reckon, there's opportunity with this.

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Speaker 3: I think once you start to break it down, it

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Speaker 3: made me realize how reachable I was going to say achievable.

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Speaker 3: It's not necessarily achievable, but it's reachabul for people. You know,

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Speaker 3: if you bought the average house in Auckland back in

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Speaker 3: two thousand and ten, the average for two you were

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Speaker 3: just made about six hundred k, because the average house

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Speaker 3: in Auckland was four hundred and fifty k forcing years ago.

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Speaker 3: Today it's about one point five million. And if you

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Speaker 3: just held that making six hundred k from the house

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Speaker 3: going up value, maybe you'd paid two hundred k the

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Speaker 3: mortgage over that time and have some deposit there to

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Speaker 3: edit up pretty quickly. And we're getting close to that

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Speaker 3: million dollar mark. And it was quite fascinating when I

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Speaker 3: was giving that seminar with down and Drops to door,

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Speaker 3: where we started creating plans for how could we each

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Speaker 3: make a million dollars over twenty odd years, and just

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Speaker 3: seeing the line in people's eyes saying, yeah, I think

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Speaker 3: this is achievable now that I know it is doable.

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Speaker 2: Yeah, yeah, that's really interesting. Thank you so much. Do

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Speaker 2: I think a lot of people will be surprised with

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Speaker 2: those numbers. Really appreciate your time. Gold to Jack that

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Speaker 2: is Ed McKnight and Our Money Guy.

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Speaker 1: For more from Saturday Morning with Jack Tame, Listen live

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Speaker 1: to News Talks EDB from nine am Saturday, or follow

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