Latest / Early Edition with Ryan Bridge / David Cunningham: Squirrel Mortgages CEO on the Annual State of Home Ownership Index

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David Cunningham: Squirrel Mortgages CEO on the Annual State of Home Ownership Index · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: More renters reckon they have a shot at buying a
• 0:02
  Speaker 1: home of their own. Keyibank's latest housing report out this morning,
• 0:05
  Speaker 1: fifty seven of non owners feel lockdown of the market,
• 0:08
  Speaker 1: which still sounds bad, but actually an improvement of six
• 0:10
  Speaker 1: percent on last year. The key we property dream seems
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  Speaker 1: to be alive and well. David Cunningham is with us
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  Speaker 1: Chief Squirrel at Squirrel Mortgages. David good morning, h Ryan
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  Speaker 1: good Good more that more renters think it's possible.
• 0:26
  Speaker 2: Well, yeah, I think we've got this Goldielocks condition really
• 0:29
  Speaker 2: for first home bars. Interest rates are down, so that
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  Speaker 2: makes renters think it's better. You know, rents have come
• 0:35
  Speaker 2: down a little bit, so maybe they're able to save
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  Speaker 2: a bit more if they're getting the benefit of the
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  Speaker 2: lower rent. You know, your key with Saber balance has
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  Speaker 2: gone up quite a bit, so your deposits getting easier.
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  Speaker 2: There's heaps of choice out there, properly price to fall
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  Speaker 2: and the heats of choice and there's not a lot
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  Speaker 2: of competition, so we call it a goldilocks time for
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  Speaker 2: first time buys. It's been that way for a year
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  Speaker 2: and it's you know, it looks like at least another
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  Speaker 2: year of that where there's not a lot of competition
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  Speaker 2: first time buy so I'm not surprised to see more
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  Speaker 2: people saying that it's possible. But there is this cohort
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  Speaker 2: of New Zealanders for whom it's sort of the dream
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  Speaker 2: that's probably not going to happen, you know, generally related
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  Speaker 2: to much lower income.
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  Speaker 1: Yes, but that that problem has always existed, hasn't it. Well,
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  Speaker 1: I mean it's certainly gotten worse over the last decade
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  Speaker 1: or two, but it's a.
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  Speaker 2: That's right, Yeah, yeah, that's right. I mean there's always
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  Speaker 2: been about sixty five percent home ownership in New Zealander.
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  Speaker 2: You know, it's going up and down a little bit
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  Speaker 2: over time, but it's cenerally about two thirds of New
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  Speaker 2: Zealanders get to own their own home, and it's been
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  Speaker 2: that way for fifty seventy five years.
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  Speaker 1: To be honest, what do you say, because you're obviously
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  Speaker 1: it's SCOREL mortgage dealing with a lot of first home buyers,
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  Speaker 1: a lot of home buyers. This textas says Ryan, No,
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  Speaker 1: you're wrong. About half of under thirties in this country
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  Speaker 1: will never own a house. The bird is flowing. Talking
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  Speaker 1: it up won't help them. I'm afraid how much of
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  Speaker 1: this do you think just personally comes down to like attitude.
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  Speaker 1: I know that sounds almost like gas lighting, because some
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  Speaker 1: people can't afford to buy a house that but for
• 2:01
  Speaker 1: others they can, they just don't think they can.
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  Speaker 2: Yeah, look to the honest. I respect you know what
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  Speaker 2: your listeners said, But to be honest, it is easier
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  Speaker 2: now than it was. When I bought my house in
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  Speaker 2: nineteen ninety, I paid one hundred and fifty thousand. I
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  Speaker 2: had saved fifteen thousand, which was at that time a
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  Speaker 2: lot of money. The bank of Mom and dad, good
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  Speaker 2: old banker. Mom and Dad chipped in fifteen thousand, and
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  Speaker 2: my payments were seven hundred bucks a week. Today that
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  Speaker 2: would be two thousand, two hundred bucks. But today that
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  Speaker 2: same average mortgage seven hundred thousand dollar house one hundred
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  Speaker 2: and forty thousand dollars mortgage is the equivalent is a
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  Speaker 2: one thousand and four to thirty six. So you know,
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  Speaker 2: it's actually significantly cheaper now than it has been for
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  Speaker 2: a long Gertney compared to back then. So you know,
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  Speaker 2: us old guys had it tough. You know, you could say,
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  Speaker 2: but in reality, if you've got the motivation, you've got kiwisaver,
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  Speaker 2: which has been an absolute game changer almost every first term.
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  Speaker 2: By it uses kiwisaver, they wouldraw forty three thousand dollars
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  Speaker 2: per person. Last year there were forty thousand people that
• 3:02
  Speaker 2: did that, so it's actually been the enabler. So it
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  Speaker 2: is within the reach of more people, perhaps than so
• 3:08
  Speaker 2: a few years ago.
• 3:08
  Speaker 1: David, appreciate your time this morning, David Cunningham from Squirrel Mortgages.
• 3:13
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• 3:16
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• 3:19
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