What is the hidden catch

Feel sorry for self funded retirees who depend on high interest rates on their savings to continue to live and not deplete their capital.

I have not been very lucky when I bought my first home in NZ the mortgage rate was 23% sold when the market was bad as I was not allowed to sub divide now I receive 11/2 % on my savings, but we manage to keep going

High property prices are a function of supply & demand & We're just not building enough to have a great supply of houses & Kiwi built has been a disaster since very few were built?

no or yes

The government and banks should just let the market crash normally so prices of houses can go down. This fake businesses of propping up the housing isn't good for people trying to buy their first home. It's only helping those with investment properties.

I guess in regards to my savings I’m a little concerned that the interest rate is so low but I have a son and daughter both paying off their homes and it’s a great financial benefit to them at present ... I guess it’s a win for some and a loss for others

No, I rent

I wish they where even lower

I believe we will have low interest rates for a long time to come. I have heard the Governor of the Reserve Bank of Australia state as much.

Yes I think there is a solution. Introduce a universal living wage so everyone can afford to buy a house, and food, and clothing etc. It would also mean there was no need to pay benefits or NZ Super. And this gets paid for by taxing the rich (eg, Australian-owned banks that take million of our dollar offshore) more. You can use low interest rates to your benefit, even more so if you move from being low paid to having a universal living wage.

Low Interest Rates are great for those wishing to purchase a home, but heaven help those who depend on their savings to keep life livable. While one section do well, the other half do very badly.

Well as things stand at the moment rather than leave money in a bank it is better to Negitivaly Gear a Property and rent it out at least that way you'll be getting some sort of return on your money that doesn't involve the Funny Money Gamble that is the Stock Market. The Government activelly encourages people with money to buy property and reduce the available stock for home buyers than also encourages those same people interested in buying their first home to want it all and have one of the Current Generation McMansions that have no yard and more toilets than bed rooms. I remember the first house we bought way back when Interest Rates where aproaching 20% and just how little we had at the end of the day flat out paying the insurance and rates back then but today people want it all and still have money left overso I'm not sure just what is going to happen. On the one hand the Federal Government is doing everything toencourage people in my age group to steal from the next generations by giving them such mas

When we first bought our house, interest rates were running about 18.5%. now they are that low my savings aren't making anything, how is the older generation supposed to live on.

It's akin to the cat chasing its tail.

It is good for my mortgage but not my savings.

Even though interest rates are low, the size of Mortgages is getting ridicules.I think it gives some people false hope to borrow big whilst rates are low.If rates go up people will get caught out.I worked in banking when interest rates were 17%,and it caused so much stress to people who borrowed at that time.Everything is rising in cost, except wages and salaries which are almost dormant.

Had to get a new bank, the last one was more interested in its shareholders than they were in us. We got minimum interest, shareholders got a part of several million dollars.

Banks are greedy rapacious beasts and should be regulated more....lol

I worry about interest rates, I have to live on my savings and the interest rate is so low I might as well leave my money under the mattress. I got the rough end of the pineapple both ends of my life. 17% interest when buying my home and no interest when I retired. That's life!

Low interest on money in the bank is hard when it is a retirement fund Been there with very high interest rates on a mortgage We did get through

Yes very concerned. Doesn’t matter how low the lending rates are when the property prices are too high, and the double whammy is that any money you may have towards a deposit for a property earns no interest. Self funded retirees ( which is what we will all have to become eventually) are being penalised for preparing for retirement rather than relying on a government issued pension. I’m not an economist, but I’m feeling a disaster on the horizon......

It's better than what I endured when the rates hit 17% - I reached the point where the monthly payments hit $2000 and that was more than I earned at the time (1990)

Unfortunately when rates go up a lot of people are going to get hurt while the rich get richer

At the moment not concerned but when they start going up yes and it is hard for self funded retires getting no interest on there savings and not much help from the government

Depends on your situation and viewpoint, this is only a diabolical problem for some people. House prices fluctuate for a variety of reasons , not only interest rates.

It is great for some of the folks but if you buy to much home it will catch up with you at some point. It always does!!

It’s hard on self funded retirees!

Been a good time for buying and selling homes at the moment in our area. Pricing of established homes are up and being sold the building of new homes is booming, currently the market is good for both sellers and buyers in our area.

If I knew the answer to this question I'd own a bank

I don't know anything about low interest rates in real estate.

No comments.

Not sure

To tell u the truth i dont think i would ever afford to buy a home i would love to but its not possible for me unless i win lotto lol

I do not see any solutions to this diabolical (very good use of the word diabolical) problem - in the USA - anytime soon?! However, an economist might have solutions (you could live with) - I would not trust an expert in real estate (sales) - but I am a CYNIC! On a personal note: I have never lived in any one place long enough - too want to own a permanent place of residence (the nomand in me)?!Edited 12-Mar-21 03:05am

RBA already said interest rate is not likely to go up until 2024!

I believe that property prices, before and after Covid, are extremely high in some areas...fortunately, I live in a suburb in WA whereby housing is affordable...It is a lovely area, probably not regarded as 'high end', but it is comfortable... don't we just need a place that we can call home without all the bells and whistles...I also believe that State Govt's should provide for more affordable housing for the much lower income families.