House prices are not only a key indicator of what is happening in an economy but they can also be a trigger for a change in economic conditions. Hence the state of the housing market comes under close scrutiny by the Reserve Bank and other Government officials. There is a very close link between house prices and inflation.
Tag Archives | personal finance
An interest-only mortgage, as the name suggests, is one where no principal repayments are required to be made during the term of the loan. It is usual for an interest-only mortgage to be interest-only for a fixed period of time, such as two years or five years, after which it can either be converted to […]
Receiving an inheritance presents a dilemma. Should it be spent on making dreams come true, or should it be conserved for retirement? A safe strategy would be to calculate the lump sum required to provide sufficient income for retirement and set that amount aside in a long term investment portfolio.
Let’s get it straight; your home is not an investment. While property appreciates in value over time, the best property to own from an investment point of view is a property that produces rental income as well as capital gain.
Starting an investment portfolio is usually somewhere near the bottom of a priority list for young people entering paid employment, who at that stage of life just want to have a good time. Of course, many employees are now members of KiwiSaver, which makes them investors, at least to the extent of 3% of their pay.
Most people dream of a comfortable retirement where a regular income flows into their bank account that is sufficient to cover more than just basic needs. For many retirees, this dream never becomes a reality.
Lets face it – right now its really hard to take control of our personal finances. Ask yourself this simple question… If you lost your job today how long could you survive on your savings? 1 week? 2 weeks? A month?