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Speaker 1: Ever do for Zealand.

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Speaker 2: So Kiwi Bank has just released its state of home

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Speaker 2: Ownership report, and it turns out that of those of

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Speaker 2: us who don't already own a home, about a third

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Speaker 2: reckon they never will. The boss of a Kiwi Bank

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Speaker 2: is Steve yucovichin with us now, Steve hi, Ever, did

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Speaker 2: you ask them why they think this?

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Speaker 1: Yeah, we did. And a couple of reasons that are

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Speaker 1: probably not a big surprise to listeners is the you know,

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Speaker 1: the cost of living, the amount of deposit that you've

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Speaker 1: got to get together, and I think, you know, the

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Speaker 1: relative wage impact versus high house prices. You know, I

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Speaker 1: think few people who will resigned that that's going to

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Speaker 1: be a really big gat Yeah.

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Speaker 2: I did the numbers again because I actually got the numbers.

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Speaker 2: I was talking about it before and I got the

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Speaker 2: numbers wrong. If you take the number, it's about half

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Speaker 2: of what I thought. So if you take the number

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Speaker 2: of us who don't own homes, it's thirty three percent,

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Speaker 2: and then you look at a third of those, it's

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Speaker 2: only eleven percent of New Zealanders, right, is around about

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Speaker 2: ten percent of us. Actually that's stressful.

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Speaker 1: Well, it's an interesting point. I guess I mean, what

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Speaker 1: we found from doing the bench stuff is that you

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Speaker 1: don't really know unless you start to run these numbers

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Speaker 1: and understand what sort of anecdotea and what people care about.

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Speaker 1: I think for that ten percent, they would argue that

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Speaker 1: they feel really locked out. I think many others are

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Speaker 1: thinking what's my pathway? And it was really interesting to

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Speaker 1: me to how many people were thinking about a new

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Speaker 1: route and a new way to own a home in

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Speaker 1: a different way.

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Speaker 2: Okay, now before we get to that, because I do

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Speaker 2: want to talk to that to you about that. Why

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Speaker 2: are millennials though, bearing this harder than anybody else. It's

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Speaker 2: like seventy percent of millennials feel stressed out about it,

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Speaker 2: and that's way above everybody else.

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Speaker 1: Yeah, I mean it's interesting, isn't it. You know, for

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Speaker 1: that group of people that are in that sort of

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Speaker 1: thirty to forty four break, I think they are the

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Speaker 1: witnesses of a very strong growth in house prices. I

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Speaker 1: think they probably have navigated a whole lot of different

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Speaker 1: changes around the regulations and things like that, so probably

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Speaker 1: all feels a little bit overwhelming for some of them.

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Speaker 2: Did you ask their next group down the gen z

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Speaker 2: is about how they feel about it.

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Speaker 1: Yeah, we did it, and so that's for your listeners

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Speaker 1: that's eighteen to twenty nine. They feel a little less

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Speaker 1: locked out, and maybe they are seeing a different world

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Speaker 1: where house prices haven't been going up as fast, or

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Speaker 1: maybe they haven't actually turned their mind to, you know,

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Speaker 1: saving the deposit yet, or maybe they're much more thrifty

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Speaker 1: and they've been saving well and so they feel good

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Speaker 1: about it.

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Speaker 2: Does that potentially say, though, then that some of it

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Speaker 2: may be in millennials heads?

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Speaker 1: It could be. I mean, I think what was really

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Speaker 1: interesting was right across millennials, Gen X, Gen Z and boomers,

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Speaker 1: more than half the people felt like they were going

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Speaker 1: to get some sense of being locked out. So across

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Speaker 1: all those generations there's a lot of people that feel

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Speaker 1: like they're doing it tough. We did some stats on

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Speaker 1: interest rates for the fixed year two rate from two

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Speaker 1: thousand and four twenty twenty four. So the average two

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Speaker 1: year fixed rate mortgage during that time was six point

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Speaker 1: two one and today with Kerry Bent, you can get

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Speaker 1: a mortgage at five point six y nine. So you know,

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Speaker 1: over a long run twenty years, the interest rates are

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Speaker 1: about where they've been, but certainly they've gone up really

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Speaker 1: steeply from recent times. So I think some stuff stays

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Speaker 1: the same and a lot changes again.

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Speaker 2: Now, the alternatives that you were talking about owning is

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Speaker 2: things like rent to own, co ownership, things like that.

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Speaker 2: They're out there. Those things exist, but do they exist

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Speaker 2: on a large enough scale to kind of meet the

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Speaker 2: demand of people.

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Speaker 1: Who want to know? I don't think they do. And

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Speaker 1: I think it's a great point, which is one of

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Speaker 1: the reasons that we were thinking about doing this research

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Speaker 1: was how do we raise awareness of these options? Because

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Speaker 1: if we can raise awareness, then you'll get more people

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Speaker 1: who are keen to participate, more developers who are keen

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Speaker 1: to do it this way, and so it's a bit

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Speaker 1: of a virtuous circle. If we can get more people

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Speaker 1: asking for it, then more people will develop it. More

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Speaker 1: people develop it, then more people will get money lent

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Speaker 1: to them.

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Speaker 2: Hey, on interest rates, what do you reckon the RB

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Speaker 2: and Z's going to do later this month?

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Speaker 1: I think they're going to cut by fifty, not seventy five. No,

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Speaker 1: I don't think so. I think seventy five just feels

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Speaker 1: too much, I think, and there's no real need in

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Speaker 1: my mind to do that, which is it's a very

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Speaker 1: bold moved. I think to go by seventy five to

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Speaker 1: fifty feels like gives people, you know, enough certainty around direction. Yeah,

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Speaker 1: but also allows people to have confidence that you know,

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Speaker 1: we're moving in the right direction.

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Speaker 2: But what about the argument that it's still restrictive, Right,

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Speaker 2: it's restricted. They admit it's restrictive at the level it is,

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Speaker 2: may well still be restrictive even with fifty shaved off it,

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Speaker 2: and then we have to sit there, Steve for three

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Speaker 2: months with it until they come back from the summer.

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Speaker 1: Hollybobs, I'm hearing you here, but I think the risk

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Speaker 1: is always that you know, you over tighten and overloose

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Speaker 1: and too fast, and so I think fifty is probably

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Speaker 1: most likely. I take your point about seventy five and restrictive,

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Speaker 1: but I think fifty is much more likely.

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Speaker 2: Hey, are you going to have to go and sit

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Speaker 2: in front of that Bank inquiry at Parliament?

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Speaker 1: I am going to get that privilege?

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Speaker 2: Yes, privilege, privilege or grilling? When are you doing it?

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Speaker 1: We've got the Christmas surprise where I think we're the

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Speaker 1: very last of the bench to go forward.

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Speaker 2: That is so that you are so lucky because by

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Speaker 2: then everybody, every one of US is probably already on

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Speaker 2: a holiday.

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Speaker 1: Aren't We don't say that hither you'll be glued to it.

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Speaker 1: I'm sure.

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Speaker 2: I'm sure. Have you already put it out there what

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Speaker 2: you earn because they're obsessed with that.

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Speaker 1: Look, I'm sure they are. And I mean we'll get

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Speaker 1: to cross that bridge if it comes to it.

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Speaker 2: Yeah, okay, well good luck. You might want to front

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Speaker 2: foot that one, Steve, Thanks very much, Steve Yukovich, boss

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Speaker 2: of keV, back yet, because you know what you mean?

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Speaker 2: You remember remember that had the thing with Antonio Antonia

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Speaker 2: from A and Z where they were like, how much

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Speaker 2: do you earn? How much do you? And She's like,

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Speaker 2: I don't actually know because you stop counting, as I

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Speaker 2: told you at five hundred thousand, don't you once you

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Speaker 2: got your sties? I learned this. Did you know that?

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Speaker 2: That's just like short term incentives, that's what they call them,

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Speaker 2: the corporate speak. My friend told me yesterday, Once you

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Speaker 2: put your stiyes on and nobody knows what you know.

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Speaker 2: I mean, very few people will you know, have worked

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Speaker 2: out what their base salary is plus their sties and

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Speaker 2: they're no, And I reckon you stop counting at five

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Speaker 2: hundred thousand and shits like multiples of that. So they

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Speaker 2: were shocked. They were like, how can you not know

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Speaker 2: how much you earn? So anyway, Steve, better put it

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Speaker 2: out there, better be, better be to the dollar. Last year,

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Speaker 2: I earned X amount of money. Not that it's any

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Speaker 2: of our business, but apparently it also is.

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