New Zealand Households' Attitudes toward Various Forms of Savings and Investment

In support of the key objectives derived from the research performed in chapter two and chapter three, the researcher will provide the list of specific interview questions to the leader on October 7, 2015. In return, the leader will provide his written responses to the researcher on October 11, 2015. The responses to the questions

The Federal Reserve Board’s Survey of Consumer Finances (SCF) is a triennial cross-sectional survey of U.S. families. The study is sponsored by the Federal Reserve Board in collaboration with the Department of the Treasury. The survey data include information on family incomes, net worth, balance sheet components, credit use, pensions, income, and demographic characteristics (Bricker, et al., 2014). A strong attempt is made to select families from all economic levels. In addition, information is also included from related surveys of pension providers and the earlier surveys conducted by the Federal Reserve Board. Data from the Survey of Consumer Finances is utilized by the Federal Reserve and other branches of the government to conduct analysis. In addition, economic research centers utilize the SCF to conduct scholarly work (Board of Governors, 2014).

There is a difference between the generation of today and home ownership; those born later are somewhat less likely to be homeowners than their predecessor at the same stage in their life. Evidence shows that, the growth of home ownership rate with age for people born in different years. Those who are born in mid 1970 now aged in their late 30s have lower rates of home ownership than the people who were born before them (Belfield et al, 2015). Also for those who were fortunate to have bought their house under the Right to Buy scheme have a higher rate of home ownership compared to those who did not get the opportunity to do so. For those who are aged 25, have a homeowner rate of, 45% compared with 33% of those born in the 1970s cohort and only 20% in born 1980s cohort. This evidence has been suggested that this change may well out to be a permanent difference between generation rather than simply changes in the timing of house purchase due to he factor such as changing in the timing and family formation (Belfield et al, 2015; ONS,

More than 75% of Americans population do not have enough saved to cover six months’ expenses, and this arises because of job loss or an unexpected life event. The number of Baby Boomers that leaving the workforce is growing and the aggregate saving rate is expected to fall even further, even if household saving behaviour remains the same.

s & World Report emphasize that “American household still save far less than those in a host of other developed countries across the pond, including Italy, Spain, and France.” The American household doesn’t think in saving money because they are compulsive

During this financial crisis various economic models on interest and inflation rates would be see buy a home as highly irrational, even for consumers who are wealthy. Despite its irrationality many people are still in purchasing or thinking of purchasing a home, and in order for economist to understand this economic action they must take into account the sociological aspects behind it as well. This is due to the idea of purchasing a house being more complex than the economic surface that is seen. There are many other more deeply embedded (and reliable) explanations as to why, especially in a time of total financial crisis, would anyone even explore the thought of purchasing a home.

The interview parts or processes included the following domains: (part-1) introduction/formalities, (part-2) questionnaire, (part-3) discussion of questionnaire provided, (part-4) past Barbie research, (part-5) discussion of past Barbie research, (part-6) final questionnaire and discussion, and (part-7) conclusion/thank you.

Home ownership has long been considered the epitome of success within Australian culture. A 2008 literature review highlighted almost 70% of the Australian population fall into two distinct categories on home ownership: outright ownership and mortgage repayments, (University of Western Sydney Urban Research Centre, 2008, p. 4). Outright home ownership comprises approximately 34% of the Australian population in the first category. Approximately 35% of the Australian population are currently repaying loans after obtaining a mortgage from an approved financial institution. Renting comprises approximately 29% of the current Australian population, (University of Western Sydney Urban Research Centre, 2008, p. 4).

After increasing my own financial awareness and witnessing the financial journeys of others during the past recession, I find that boomerang buyers should not consider purchasing a home as their sole financial investment. Mortgages with ballooning payments mixed with hopes of future refinancing are a dangerous combination. These factors precipitated the last housing bubble and the eventual recession period. In order to learn from past behavior, home buyers should ensure that they habitually save for a “rainy day fund” because financial rainy days have proven to be cyclical. Purchasing a home should be a process that results in a buyer feeling comfortable with the home they choose versus simply selecting the largest mortgage for which they

Upon examination of the change in average residential sale prices in the Auckland region the social problem of affordable housing becomes evident – house prices have increased by 43.4%, from $487,034 to $699,659 over the last five years in the Auckland region alone (April 2009 – April 2014). There is no sign of this trend slumping. (QV, 2014). When these figures are placed in comparison with data gathered from the 2013 census, the severity of the problem comes to light – the number of people who have not moved from 2008-2013 has increased by 41% since 2006, 56% of home owners have a mortgage (AMNZ, 2013), there has been an increase in people renting with an estimated 56,000 more rentals units needed over the next decade (The New Zealand Herald, 2007) and the average age for the first home buyer has now risen to 36 years (Affordable Housing New Zealand Ltd).

This report was requested by lecturer Carole Hill at Coatbridge College. It includes a planning stage, developing stage and evaluation stage, each stage has to be submitted by 02 November 2012, 01 March 2013 and 10 May 2013. The purpose of the report is to complete the planning, developing and evaluating stages relating to the case study provided.

The purpose of the survey was to determine whether there is a relationship between investors’ income level and their investment options of RRSP and TFSA. Our literature review suggested that investors with higher income would be more favourable when choosing RRSP rather than TFSA. The null hypothesis was structured assuming there is no relationship between the income level and the investment choices between RRSP and TFSA. Based on the t-test we conducted using SPSS, we do not reject the null hypothesis (H0), which suggests that with a significance level of 5% we cannot conclude that the investors that chose RRSP had a higher income than the investors who chose TFSA. Therefore, the test result turned out to be different from what we have concluded from the literature review.

It seems the old adage that ‘history never repeats’ is false: history does repeat itself in the form of yet another housing bubble in a developed western country. In the context of New Zealand, a housing bubble has formed in our largest city, Auckland, and is threatening to spread across the upper North Island. Unfortunately, this is not new news, with house prices really beginning to soar back in 2007. Successive governments have been happy to pass the buck onto their incumbents without addressing the issue, mainly due to the complex nature of the problem and the inherent political dangers of grappling with such a bubble. This paper will describe the current situation in Auckland and explain why housing is prohibitively expensive before turning onto who are the major stakeholders in this situation and what can be done about it.

Sustainable economic growth is desirable for Households of New Zealand as it generally means that unemployment levels would decrease from the current rate of 5.6%, resulting in a higher disposable income for New Zealand Households as their incomes would increase from receiving a larger portion of income, resulting in an increase in aggregate demand of goods and

In addition, more households report they would cut back consumption as a direct response to house price falls than to house price rise (Mastrogiacomo, M., et al，2006, Gathergood，2012). Relaxations of credit constraints are more likely explains for the observed correlation between wealth and consumption (Atalay, Whelan et al.，2014). some scholars suggest liberate finacial constraint to enhance the average consumption-to-income ratio (Aron, Duca et al.，2012, Atalay, Whelan et al.，2013). Gathergood, J. (2012) condemned the borrowing constraint which results the cut of household consumption. there was no housing 'wealth effect ' before credit market liberalization in the US and the UK (Muellbauer，2008). The interaction between housing prices and household borrowing was substantially weaker before the financial deregulation in Finnish (Oikarinen，2009).