1 00:00:00,080 --> 00:00:01,960 Speaker 1: Just a reminder this morning of the role that housing 2 00:00:02,040 --> 00:00:04,360 Speaker 1: plays in the key we psyche Qwebank State of Home 3 00:00:04,400 --> 00:00:07,240 Speaker 1: Ownership report shows eighty five percent of say owning a 4 00:00:07,280 --> 00:00:09,559 Speaker 1: home remains a key goal. Forty three percent believe it's 5 00:00:09,600 --> 00:00:12,120 Speaker 1: now more achievable, which is up seven percent, which is good. 6 00:00:12,520 --> 00:00:16,079 Speaker 1: Stability and security are your big drivers. Eighty eight percent 7 00:00:16,079 --> 00:00:18,479 Speaker 1: wanting the independence of their own space. Steve Yukovic is 8 00:00:18,480 --> 00:00:21,040 Speaker 1: the Qewi Bank CEO and he's with us. Steve, morning 9 00:00:21,079 --> 00:00:24,600 Speaker 1: to you on morning. It has always been that way 10 00:00:24,600 --> 00:00:26,360 Speaker 1: and it always will be. Is that a fair statement 11 00:00:26,360 --> 00:00:27,560 Speaker 1: to make we love houses? 12 00:00:27,800 --> 00:00:29,680 Speaker 2: I think yeah, I think it is. It's at the 13 00:00:29,680 --> 00:00:32,480 Speaker 2: heart of what people feel about security and how they 14 00:00:32,640 --> 00:00:34,560 Speaker 2: feel like they can get ahead and the people. 15 00:00:34,880 --> 00:00:37,840 Speaker 1: What about attitude to debt? To people's attitude to debt change? 16 00:00:37,880 --> 00:00:40,560 Speaker 1: For example, were borrowing more? Are we more bullish about 17 00:00:40,560 --> 00:00:41,600 Speaker 1: the market at the moment or not? 18 00:00:42,600 --> 00:00:44,879 Speaker 2: I think the big change is how much people are 19 00:00:44,880 --> 00:00:46,839 Speaker 2: feeling about what they can do to repay debt as 20 00:00:46,920 --> 00:00:48,760 Speaker 2: quickly as they can, which makes a lot of sense 21 00:00:48,760 --> 00:00:51,640 Speaker 2: and is a great decision. So lots of customers in 22 00:00:51,640 --> 00:00:53,840 Speaker 2: the survey said, you know, when they get the option 23 00:00:53,920 --> 00:00:55,800 Speaker 2: they want to pay it down fast. Are they're thinking 24 00:00:55,840 --> 00:00:59,080 Speaker 2: about shortening up the term of their loan, thinking about 25 00:00:59,120 --> 00:01:01,640 Speaker 2: how they borrow different least, So there's definitely been a 26 00:01:01,680 --> 00:01:05,360 Speaker 2: big change around how people feel about borrowing. It used 27 00:01:05,360 --> 00:01:07,520 Speaker 2: to be pretty set and forget that's no longer the case. 28 00:01:07,640 --> 00:01:09,959 Speaker 1: Yeah, are you going to view on a fifty year mortgage? 29 00:01:11,280 --> 00:01:14,759 Speaker 2: Yeah? I mean that's that feels like a pretty wild idea. 30 00:01:15,000 --> 00:01:17,640 Speaker 2: I honestly don't think that in New Zealand. The market's 31 00:01:17,640 --> 00:01:19,720 Speaker 2: deep enough to work out how you would price that. 32 00:01:21,720 --> 00:01:23,600 Speaker 2: But you know, the advice I got when I first 33 00:01:23,600 --> 00:01:26,040 Speaker 2: bought a home from a very experienced guy was, you know, 34 00:01:26,080 --> 00:01:27,720 Speaker 2: pick the shortest team you can and pay it off 35 00:01:27,760 --> 00:01:29,360 Speaker 2: as fast as you can. So I still think that 36 00:01:29,360 --> 00:01:29,839 Speaker 2: makes sense. 37 00:01:29,959 --> 00:01:32,319 Speaker 1: Yeah, what a most people do initially? Do they go 38 00:01:32,400 --> 00:01:33,279 Speaker 1: twenty five to thirty? 39 00:01:34,240 --> 00:01:36,919 Speaker 2: Yeah? They do. Yeah, the default is pretty much twenty years. 40 00:01:37,280 --> 00:01:40,000 Speaker 2: A lot of people do twenty five. There is the 41 00:01:40,040 --> 00:01:42,600 Speaker 2: option to do thirty, but very few people take that. Right. 42 00:01:42,680 --> 00:01:45,760 Speaker 1: The number in your work that worries me, the forty 43 00:01:45,760 --> 00:01:47,960 Speaker 1: three percent of nine owners who think they'll never own. 44 00:01:48,360 --> 00:01:51,280 Speaker 1: How real is that versus just it's psychological? 45 00:01:52,400 --> 00:01:55,520 Speaker 2: I think it's pretty rareal. I mean getting together. You know, 46 00:01:55,520 --> 00:01:57,760 Speaker 2: one hundred and fifty two hundred thousand dollars is a 47 00:01:57,800 --> 00:02:01,720 Speaker 2: deposit with the current cost of living headwinds as a real, 48 00:02:01,800 --> 00:02:05,600 Speaker 2: real battle. I think that numbers always been pretty consistent 49 00:02:05,640 --> 00:02:08,040 Speaker 2: about how hard it is to get that money together. 50 00:02:09,000 --> 00:02:09,920 Speaker 2: So I think that's real. 51 00:02:10,160 --> 00:02:12,720 Speaker 1: So how do we juxtapose what we know is real 52 00:02:13,040 --> 00:02:16,280 Speaker 1: the forty three percent who feel they're locked out versus 53 00:02:16,280 --> 00:02:18,960 Speaker 1: the twenty seven percent is who are first home buyers 54 00:02:19,240 --> 00:02:21,320 Speaker 1: who clearly aren't locked out and they can buy a 55 00:02:21,360 --> 00:02:23,200 Speaker 1: house and they're the major players in the market. 56 00:02:24,160 --> 00:02:26,840 Speaker 2: Look, I really, deep down believe that if you know, 57 00:02:26,919 --> 00:02:29,160 Speaker 2: whatever you believe is true. So you know, if you 58 00:02:29,200 --> 00:02:31,080 Speaker 2: think you can get there and you can save the money, 59 00:02:31,120 --> 00:02:34,000 Speaker 2: then that's true. If you think it's too hard, that's 60 00:02:34,040 --> 00:02:36,440 Speaker 2: true as well. I mean a lot of people thinking 61 00:02:36,480 --> 00:02:38,760 Speaker 2: differently about how they would buy a house might so 62 00:02:39,480 --> 00:02:41,480 Speaker 2: I think, you know, it makes total sense. You know, 63 00:02:41,560 --> 00:02:47,720 Speaker 2: many cultures pacifica Madi, many Asian countries. You know, generations 64 00:02:47,760 --> 00:02:50,160 Speaker 2: living together in the same house is very normal. So 65 00:02:50,200 --> 00:02:53,080 Speaker 2: if you think about getting together with your parents and 66 00:02:53,120 --> 00:02:55,360 Speaker 2: your grandparents to try and buy a house, and then 67 00:02:55,400 --> 00:02:57,920 Speaker 2: you've got different leavers, and so I think as New 68 00:02:58,000 --> 00:03:01,440 Speaker 2: Zealand's you know, face and shape chain, you'll see people 69 00:03:01,480 --> 00:03:02,800 Speaker 2: buying houses in different ways. 70 00:03:03,080 --> 00:03:04,680 Speaker 1: How big is the bank of mum and Dad now 71 00:03:04,840 --> 00:03:05,400 Speaker 1: at the moment? 72 00:03:06,200 --> 00:03:08,919 Speaker 2: Oh? Still huge. I mean a massive amount of money 73 00:03:09,000 --> 00:03:11,839 Speaker 2: is supported for the kids getting up on that first 74 00:03:11,840 --> 00:03:14,760 Speaker 2: step on the ladder. And I'd probably say thirty to 75 00:03:14,760 --> 00:03:18,040 Speaker 2: forty percent of people get supports somehow from a bar 76 00:03:18,080 --> 00:03:18,880 Speaker 2: of family or fun. 77 00:03:18,880 --> 00:03:21,720 Speaker 1: Now, okay, I'm getting some mail. Help me out here. 78 00:03:22,200 --> 00:03:26,280 Speaker 1: Swap rates are problematic post Hawksby's announcement the other day 79 00:03:26,320 --> 00:03:28,480 Speaker 1: fixed rates are going up. Is there an issue here 80 00:03:28,600 --> 00:03:28,760 Speaker 1: or not? 81 00:03:30,480 --> 00:03:32,200 Speaker 2: No? I think well, I mean we talked about it 82 00:03:32,200 --> 00:03:34,880 Speaker 2: the other day. I'm pretty convinced we're at the bottom. 83 00:03:35,560 --> 00:03:37,360 Speaker 2: And if you're at the bottom, then when you look ahead, 84 00:03:37,400 --> 00:03:40,200 Speaker 2: normally things are going up. And so market says that 85 00:03:40,320 --> 00:03:43,480 Speaker 2: rates are going up early next year. So March April May, 86 00:03:43,880 --> 00:03:45,280 Speaker 2: I think we might see a tickup. 87 00:03:45,400 --> 00:03:47,920 Speaker 1: So now's your window to act if you want to 88 00:03:47,960 --> 00:03:51,440 Speaker 1: act without giving the financial advice to people is just said, 89 00:03:51,720 --> 00:03:52,960 Speaker 1: are we about to turn? 90 00:03:53,120 --> 00:03:53,200 Speaker 2: So? 91 00:03:53,280 --> 00:03:55,520 Speaker 1: In other words, right now is the sweet spot. 92 00:03:56,120 --> 00:03:58,520 Speaker 2: When you look back ten years, this looks like very 93 00:03:58,520 --> 00:04:00,400 Speaker 2: close to the bottom. And if you think about what 94 00:04:00,480 --> 00:04:03,320 Speaker 2: the average rates over ten to fifteen years are, this 95 00:04:03,480 --> 00:04:05,440 Speaker 2: is lower than average. So you've got to say this 96 00:04:05,560 --> 00:04:06,360 Speaker 2: is close to the bottom. 97 00:04:06,480 --> 00:04:08,800 Speaker 1: Good stuff to appreciate it as always Steve Yukovic the 98 00:04:09,080 --> 00:04:12,880 Speaker 1: Kiwi Bank. Yes, swap rates continuing to trade higher post 99 00:04:12,920 --> 00:04:15,600 Speaker 1: the monetary announcement. Two year rates are up thirty one 100 00:04:15,640 --> 00:04:19,000 Speaker 1: basis points. And the reason I'm telling you this swap 101 00:04:19,040 --> 00:04:22,560 Speaker 1: rate that it's the market going. Hawksby was too blunt. 102 00:04:23,040 --> 00:04:26,840 Speaker 1: Hawksby said it's over. The market might have priced in 103 00:04:26,920 --> 00:04:29,359 Speaker 1: one more cut in the new year. Because he was 104 00:04:29,400 --> 00:04:32,480 Speaker 1: so explicit on his way out. We don't need to 105 00:04:32,480 --> 00:04:34,400 Speaker 1: worry about that anymore. In fact, one of the pieces 106 00:04:34,440 --> 00:04:37,680 Speaker 1: of mail this morning said Hawksby sabotaged the recovery on 107 00:04:37,720 --> 00:04:40,919 Speaker 1: his way out the door. So we're thinking about For 108 00:04:41,040 --> 00:04:44,400 Speaker 1: more from the Mic Asking Breakfast, listen live to news talks. 109 00:04:44,440 --> 00:04:47,640 Speaker 2: It'd be from six am weekdays, or follow the podcast 110 00:04:47,640 --> 00:04:48,480 Speaker 2: on iHeartRadio.