Latest news with #FrancesCook
1News
4 days ago
- Business
- 1News
Is your dream suburb too expensive? 'Rentvesting' could be the solution
Rentvesting is where you live in one place and buy a house in another. But what are the pros and cons? Frances Cook weighs them up. There's a very Kiwi idea that owning the home you live in is the pinnacle of success. You get the keys, throw a housewarming, maybe dig a veggie patch, and settle in with the satisfaction that you've 'made it'. But what if that belief is getting in the way of smarter decisions? The Tuckers would like to return to New Zealand and buy a home one day. (Source: Let's be honest, trying to buy your first home in places like Auckland or Queenstown is brutal. ADVERTISEMENT Plenty of people need to live in those places for work reasons, yet prices are sky-high, and every extra year it takes to save that deposit is another year of compromise. Smaller house. A landlord. Longer commute. Another year where you're paying someone else's mortgage, instead of your own. But what if you didn't have to buy where you live? What if you could rent your dream lifestyle, and invest somewhere else? That's the idea behind rentvesting, and it might be worth a look. Rentvesting 101 At its core, rentvesting is exactly what it sounds like. You rent your home, and buy a house elsewhere, typically in a more affordable area with better financial returns. It's a strategy that Ilse Wolfe knows well. Wolfe is a seasoned property coach and investor who recently made the move herself. She sold her Grey Lynn home and shifted to a rental on Takapuna Beach. ADVERTISEMENT 'Rentvesting is basically upgrading your lifestyle, going to a location that you want that's usually more premium than where you could afford to have a mortgage,' she says. 'So it's a lifestyle upgrade, for less of a weekly outgoing.' Wolfe and her husband looked at the cost of owning their million-dollar home in Grey Lynn, and compared it to what that same amount could do if they were to buy in a cheaper area, rent out that house and have the mortgage paid by tenants, while gleaning a little extra income in the process. And all while renting a lovely home themselves in a beachside area where properties tend to be even more expensive than in Grey Lynn. But could you go back to renting? Here's where the emotional friction kicks in. For most of us, the idea of renting forever can feel… unsettling. Especially if you have kids. Especially if you've finally found a school zone you like. Especially if you want to redecorate without having to ask for permission. Or if you're just tired of moving house every time the landlord decides to renovate. School zones are often a major consideration for families choosing where they live. (Source: 1News) ADVERTISEMENT Wolfe understands that hesitation. She says one of the biggest mental hurdles in their decision was whether they were about to uproot their children's lives, including school and friendships. But after six weeks in their new rental, they were sure that it had been the right call, even if it was daunting at the time. Ttheir landlords live next door, have owned the property for decades, and treat it with pride. She credits that for creating a sense of mutual care and community. 'They come around and check on us,' she says. 'And the cool thing is… we have neighbourhood drinks. All of the neighbours on our street, three or four times a year, get together. So we're in a real community here and the kids are invited.' The numbers still matter Of course, warm fuzzies aren't enough. Rentvesting only works if it stacks up financially. If you're a first-home buyer, you may also need to change strategy, if you're mainly saving into your KiwiSaver. Your KiwiSaver can only be used for a first home deposit if you'll actually be living there. ADVERTISEMENT You may also need to bring in a pro to help you run the numbers. Get an accountant to help you run the numbers. (Source: Wolfe emphasises that anyone considering rentvesting should chat to an accountant early, as the move could have implications for things like ownership structure, interest deductibility, or capital gains exposure. She also stressed the importance of not pushing your weekly rent budget to the limit just because a property is exciting. There is the possibility of rent increasing, and you need to give yourself buffer to afford that possibility. 'You don't want that mental load on top to have that concern. There's enough to juggle these days.' Is this a good first-home buyer strategy? Wolfe said more of her clients, especially younger couples, are now rentvesting as their entry point into property. ADVERTISEMENT Some already have families and choose to rent a home they love, while using their deposit to purchase cashflow-positive rentals in more affordable parts of the country. She described one couple who had lived in their rental for years and didn't want to downgrade just to 'get on the ladder.' Instead, they used their savings to buy two investment properties in regional New Zealand. Wolfe helped them turn each one into a four-bedroom rental, earning more than enough to cover costs, even after the arrival of their first baby. 'They're making money from a rental property, they're living in a home that's better than what they know they could otherwise afford,' she says. "So they are moving forward and they now have two rental properties before they've even bought their own home.' Rentvesting isn't a silver bullet. It won't work for everyone. And it's definitely not the mainstream path — yet. But if you feel like you're stuck, priced out of buying where you want to live, and getting nowhere fast, then rentvesting could open up another path. One where you still make progress, even if it doesn't look like the traditional 'first home' story. The information in this article is general in nature and should not be read as personal financial advice. ADVERTISEMENT
1News
23-05-2025
- Business
- 1News
Benefits, KiwiSaver to be means-tested — so why aren't pensions?
A Government decision to means-and-income-test support available to children and younger people, but not alter the eligibility for NZ Super, has prompted questions from some commentators. As part of Budget 2025, the Government announced it would income-test eligibility for the Best Start payment in the first year of a child's life. This will affect about 60,000 families who previously would have been able to access the money, before being income tested in the child's second and third year. Teenagers who are receiving JobSeeker benefits will be assessed against a "parental assistance test" which will determine whether their parents could provide them financial support. The member tax credit in KiwiSaver will be halved and not available to anyone earning over $180,000. But anyone earning at that level was still entitled to the full NZ Super payment. "As one of my team members commented — this Budget was all about taking away from young people and giving to the older generation [through] extra cancer treatment, rates relief for Gold Card members and continuation of NZ Super," said Rupert Carlyon, founder of Koura KiwiSaver. "For young people, we are now means testing KiwiSaver contributions, Best Start payments and not providing welfare to those under the age of 20." He said younger people would also be affected by a lower level of investment in infrastructure. Financial journalist Frances Cook told Breakfast she was 'very concerned' by some of the changes made to KiwiSaver. (Source: Breakfast) "The Budget is described as a budget forcing people to pay their own way where they can. Though NZ Super remains untouched, despite hundreds of thousands of Kiwis receiving it that do not need it." He said NZ Super should be means tested in the same way but it was not politically feasible for the government to do so. "Young people need to be better at voting to drive through change that benefits them." Shamubeel Eaqub, chief economist at Simplicity, said he too thought it was interesting that the KiwiSaver incentive would not be available to people earning more than $180,000 but no such test applied to the pension, which costs nearly $25 billion a year. "It's incoherent... incentives for Kiwis to save for their future is means-tested, but New Zealand Super — which is universal welfare for older people — is untouched." Asked on Nine to Noon her thoughts on means-testing superannuation, Nicola Willis said it was not the Government's policy. "We remain committed to universal New Zealand superannuation." She said National had not yet had a caucus discussion on changes to superannuation. "But I'm on the record at the last election campaign that we campaigned for the age of eligibility for New Zealand superannuation to be lifted. That was to make New Zealand superannuation more affordable, and more sustainable, and to reflect the fact that New Zealanders are working for much, much longer. We campaigned on that because I believe it was the right thing to do… Labour weaponised that against us."
The Spinoff
22-05-2025
- Business
- The Spinoff
KiwiSaver just changed – what should I do with my money now?
With government KiwiSaver contributions set to halve, is there a better way to save for retirement? Frances Cook breaks it down. Love it or hate it, KiwiSaver just got a shakeup. The government contribution is being halved, from $521 to $260 a year. And if you're earning a good income, over $180,000? You'll lose it altogether. I'll be honest from the get-go: I don't love it. KiwiSaver already doesn't have as many perks as schemes like Australia's Super, with its generous tax benefits, and much higher employer contributions. Frankly, we're losing enough of our bright sparks to Australia, and don't need to lose any more. To be fair, the KiwiSaver changes aren't all bad, either. Sixteen and 17-year-olds finally get KiwiSaver benefits, and it's about time. The government has also bumped up the contribution rate, which will slowly shift over the next two years to be a default 4% from you, and 4% from your employer. Whether you're team Love It, or team Hate It, let's lay out exactly what's changed and what you need to know to make sure your future nest egg is working smarter, not harder. The good: a bigger employer boost Bumping up the minimum contribution to 4% means more going into your savings. That's great, in theory. Especially when it's partly coming from your boss. Here's the fine print you should watch out for. Some employers use a 'total remuneration' model, where your KiwiSaver contribution is technically included in your salary package. So that 4% might be coming from money you would've otherwise been paid in cash. In fact, Treasury's own analysis expects 80% of that extra contribution to be offset by lower pay rises. A savings boost is still better than nothing, but let's not pretend it's all upside or bonus funds. Still, if you're lucky enough to have an employer actually contributing extra to your KiwiSaver, that compound growth will help you a lot over time. The bad: cutting the government top-up One of KiwiSaver's big perks has always been the government contribution. It used to be that if you contributed at least $1,042.86 a year, the government would chip in $521. That perk has now been halved, to only $260. Just 25 cents for every dollar you put in (up to $1,042 of your dollars). Sure, I guess it's better than zero, but it's a downgrade. And that hurts, especially for self-employed people, who don't get employer contributions and often relied on that top-up as their only extra boost. If that's you, it's still worth putting in $1,042.86 each year. That $260 match is worth it, and still a good slice of cash to have. It's just a little galling to have it constantly chipped away at. The risk: political football syndrome One of the most common things I hear in my inbox right now? 'How can we trust KiwiSaver if the rules keep changing?' It's a fair question. Retirement planning is long-term. And tinkering by politicians doesn't exactly build confidence, especially when the tinkering always seems to be in the form of cutting back, rather than building up. But let's zoom out. KiwiSaver is still one of the best tools available for building long-term wealth. Your money is legally yours. It's not held by the government, but by investment providers. The government can tweak the incentives, but they can't take your money. That said, yes, changes might keep coming. So the key is to take charge of what you can control. One of the biggest mistakes people make with their KiwiSaver is having it in the wrong fund. Conservative when it should be growth, or growth when it should be conservative. It's a setting that takes 10 minutes to change, and could mean a difference of hundreds of thousands of dollars by the time you retire. Far more than any government contribution would add up to. Not sure which one you should be using? Try the Sorted Fund Finder. It's free, independent and really easy to use. What next? This Budget made one thing painfully clear: no one's handing out freebies. If you want a good retirement, you'll need to build it yourself. That means reviewing your KiwiSaver, boosting your savings rate where you can, and making sure you're in the right fund. You don't need to do everything at once, but ignoring it altogether will cost you. Pick one thing. Change it. Then keep going.
Scoop
16-05-2025
- Automotive
- Scoop
ChrisFix, Frances Cook And Tim Warren Tell Kiwis How To Buy A Car
Press Release – AutoFlip ChrisFix the worlds largest DIY automotive YouTuber with over 10.6 million subscribers offers practical tips for everyday buyers. Top automotive experts and a leading financial journalist unite to offer exclusive advice for smart car purchasing in New Zealand In an era of rising living costs and tighter budgets, buying a car remains one of the biggest financial decisions a Kiwi can make. Recognising that even the most exciting purchase can turn into a costly regret, Autoflip is proud to unveil an exclusive guide featuring internationally renowned DIY automotive expert ChrisFix, acclaimed New Zealand financial journalist Frances Cook, and seasoned car market commentator Tim Warren, Editor of Drive Weekly. Expert Advice from ChrisFix ChrisFix – the world's largest DIY automotive YouTuber with over 10.6 million subscribers – offers practical tips for everyday buyers. He advises: Stay within your budget: 'For ordinary people looking for a car, I would just get something that is in your price range, or even slightly less. Spending less means you have funds to put towards any necessary fixes – because nearly all cars need a bit of attention, even brand-new ones.' Consider a nearly-new model: 'Buying a new car can be a luxury many can ill-afford. Opting for a car that is three or four years old can save you 20–30% without compromising on reliability or warranty.' Enjoy your choice: 'Life's short – drive the car you love. Choose a vehicle within your budget and relish the experience.' Know your car: 'Understanding basic car maintenance, like checking fluids or changing a tyre, can save you a fortune in the long run.' Insight from Frances Cook Financial journalist Frances Cook, celebrated for her clear and unflinching advice on personal finance, weighs in on the investment aspect of car ownership: 'Cars are a classic depreciating asset – they lose value from the moment you drive them off the lot. That said, a well-chosen used car, particularly one between 2 and 10 years old, often offers the best balance between cost and reliability.' On financing, she cautions: 'Whenever possible, buy in cash. Debt only adds to your expense through interest and fees. If a loan is unavoidable, aim to clear it within three years to minimise additional costs.' Tim Warren on Safety and Research Automotive expert Tim Warren highlights the importance of safety and thorough research: 'Safety and reliability are paramount. Look for vehicles with low maintenance costs and straightforward repairs.' 'The biggest mistake buyers make is not researching their chosen car thoroughly. With abundant free resources such as YouTube reviews and car forums, there is no excuse not to be well-informed.' A Booming Used Car Market Recent statistics underscore the shift in the market: new vehicle registrations have declined by 14.1% since January 2024, while Toyota's certified pre-owned sales have surged by 39% in 2024, with used car imports reaching record levels. As affordability drives demand, smart buyers are increasingly turning to second-hand options for the best deals. About Autoflip Autoflip is New Zealand's leading platform dedicated to connecting car owners with licensed dealers. Whether buying or selling, Autoflip ensures a smooth, efficient process that maximises value and minimises hassle
Scoop
15-05-2025
- Automotive
- Scoop
ChrisFix, Frances Cook And Tim Warren Tell Kiwis How To Buy A Car
Top automotive experts and a leading financial journalist unite to offer exclusive advice for smart car purchasing in New Zealand In an era of rising living costs and tighter budgets, buying a car remains one of the biggest financial decisions a Kiwi can make. Recognising that even the most exciting purchase can turn into a costly regret, Autoflip is proud to unveil an exclusive guide featuring internationally renowned DIY automotive expert ChrisFix, acclaimed New Zealand financial journalist Frances Cook, and seasoned car market commentator Tim Warren, Editor of Drive Weekly. Expert Advice from ChrisFix ChrisFix – the world's largest DIY automotive YouTuber with over 10.6 million subscribers – offers practical tips for everyday buyers. He advises: Stay within your budget: 'For ordinary people looking for a car, I would just get something that is in your price range, or even slightly less. Spending less means you have funds to put towards any necessary fixes – because nearly all cars need a bit of attention, even brand-new ones.' Consider a nearly-new model: 'Buying a new car can be a luxury many can ill-afford. Opting for a car that is three or four years old can save you 20–30% without compromising on reliability or warranty.' Enjoy your choice: 'Life's short – drive the car you love. Choose a vehicle within your budget and relish the experience.' Know your car: 'Understanding basic car maintenance, like checking fluids or changing a tyre, can save you a fortune in the long run.' Insight from Frances Cook Financial journalist Frances Cook, celebrated for her clear and unflinching advice on personal finance, weighs in on the investment aspect of car ownership: 'Cars are a classic depreciating asset – they lose value from the moment you drive them off the lot. That said, a well-chosen used car, particularly one between 2 and 10 years old, often offers the best balance between cost and reliability.' On financing, she cautions: 'Whenever possible, buy in cash. Debt only adds to your expense through interest and fees. If a loan is unavoidable, aim to clear it within three years to minimise additional costs.' Tim Warren on Safety and Research Automotive expert Tim Warren highlights the importance of safety and thorough research: 'Safety and reliability are paramount. Look for vehicles with low maintenance costs and straightforward repairs.' 'The biggest mistake buyers make is not researching their chosen car thoroughly. With abundant free resources such as YouTube reviews and car forums, there is no excuse not to be well-informed.' A Booming Used Car Market Recent statistics underscore the shift in the market: new vehicle registrations have declined by 14.1% since January 2024, while Toyota's certified pre-owned sales have surged by 39% in 2024, with used car imports reaching record levels. As affordability drives demand, smart buyers are increasingly turning to second-hand options for the best deals.
