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1News
21 hours 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
5 days ago
- Business
- 1News
With falling house prices, fewer retirees can rely on their home as a nest egg
Retirement is beginning to look very different for Kiwis, with growing numbers still renting, paying a mortage, or owning a home of decreasing value. Claire Dale reports. Changes to KiwiSaver, global economic uncertainty and predictions house prices could drop by as much as 20% by 2030 all mean retirement is looking very different to how it once did. A retirement strategy based on the equity held in a house is no longer as reliable as it has been in the past. Home ownership in Aotearoa New Zealand fell from 75% in 1991 to 60% in 2023 and is projected to fall to 48% in 2048. The average age of a first-home buyer has also risen to 36, meaning an increasing number of New Zealanders (13%) are paying off their mortgages after they reach retirement age. Renting into retirement is becoming a new normal. (Source: ADVERTISEMENT The number of retirees renting is also on the rise. By 2048, 40% of them will rent, placing pressure on New Zealand's housing stock. KiwiSaver is unlikely to replace the traditional housing nest egg. New Zealanders have, on average, NZ$37,079 in their KiwiSaver accounts, with thousands of people reaching close to retirement age with less than $10,000 saved. Investing at the price peak The prospect of retirement looks bleakest for those currently aged between 35 and 49 years old. A recent report from credit agency Centrix found this group was struggling the most financially. The 35-49-year-old age group tends to struggle financially. (Source: A big part of the problem is that house prices skyrocketed just as they became first-time home buyers. The average asking price for residential property rose by 60.3% over the past decade, from $556,931 at the beginning of 2015 to $892,579 at the end of 2024. While incomes have also increased, they have not matched housing prices. In 2000, houses cost about five times the median household income. But by 2025, the median price had risen to 7.5 times the median household income. ADVERTISEMENT Those who bought their first home around the peak in 2021 are likely to be hit hardest by the forecast drop in house values. According to data insight firm Cotality (formerly Corelogic), nominal prices are expected to pass their 2021 peak by mid-2029. But when adjusted for inflation, prices in mid-2030 would be a fifth below the peak. Working into retirement Older New Zealanders are also facing significant housing pressures. According to a 2022 report from Treasury, over half of superannuitants still paying off mortgages spent more than 80% of their superannuation income on housing costs. Those who are mortgage-free are spending less than 20% of their super on housing. Between 2019 and 2024, the percentage of overdue mortgages for the 50+ age groups ranged between 2% and 2.5%, compared to a range of 1% to 1.5% for all mortgages. People between the age of 55 and 64 are likely to have purchased their homes in the late 1990s and early 2000s, so are less likely to be hurt by the 2021 peak and subsequent trough. Despite this apparent advantage, only 38% of people between 55 and 64 are mortgage free. ADVERTISEMENT The morning's headlines in 90 seconds, including an Auckland teen seriously ill in Vietnam, Trump slams supporters, and Icelandic volcano prompts evacuations. (Source: 1News) KiwiSaver issues The possibility of using accumulated KiwiSaver funds to clear a mortgage is also diminishing. As a result of the 2025 Budget changes to KiwiSaver, employee and employer contributions will rise from April 2026 to 3.5% and from April 2028 to 4%, offsetting the reduced annual government contribution. The end of employer contributions matters particularly to the 24% of those aged over 65 years who are still in the workforce. A rule change in 2021 means employers are not required to make contributions or to deduct employee contributions, unless the employee continues to make KiwiSaver contributions. But current global crises are affecting KiwiSaver returns. Uncertain and volatile markets, especially for actively managed funds, mean fund managers reallocate money to try to minimise losses. Not all their bets pay off. By 2030, Stats NZ projects that approximately 265,000 people aged 65 and over will be in the workforce. Half of those in their sixties are employed in New Zealand. (Source: ADVERTISEMENT The Office for Seniors notes that although older workers have challenges finding and staying in paid work, a third of the workforce is aged over 50 and 50% of people aged 60 to 69 are employed. Importantly, as the Retirement Commission research found, a third of people over 65 were not working by choice. An increasing number, who neither own their home nor have significant retirement savings, have to continue working past 65 because they need the money to eat and pay the bills. As New Zealand's population ages, and more seniors have to work to pay for the essentials, it's clear retirement is going to look different. Betting on the value of a house to fund life after 65 is less certain than it used to be. More than ever, New Zealanders need to consider how they will live well in their later years. Claire Dale is a research fellow at the Pensions and Intergenerational Equity (PIE) research hub, University of Auckland, Waipapa Taumata Rau. This article is republished from The Conversation under a Creative Commons licence.
1News
07-07-2025
- Health
- 1News
Why frequent nightmares may shorten your life by years
Australian expert Timothy Hearn explains why frequent nightmares can create faster aging and poor health. Waking up from a nightmare can leave your heart pounding, but the effects may reach far beyond a restless night. Adults who suffer bad dreams every week were almost three times more likely to die before age 75 than people who rarely have them. This alarming conclusion – which is yet to be peer reviewed – comes from researchers who combined data from four large long-term studies in the US, following more than 4000 people between the ages of 26 and 74. At the beginning, participants reported how often nightmares disrupted their sleep. Over the next 18 years, the researchers kept track of how many participants died prematurely – 227 in total. Even after considering common risk factors like age, sex, mental health, smoking and weight, people who had nightmares every week were still found to be nearly three times more likely to die prematurely – about the same risk as heavy smoking. The team also examined 'epigenetic clocks' – chemical marks on DNA that act as biological mileage counters. People haunted by frequent nightmares were biologically older than their birth certificates suggested, across all three clocks used (DunedinPACE, GrimAge and PhenoAge). ADVERTISEMENT The science behind the silent scream Faster ageing accounted for about 39% of the link between nightmares and early death, implying that whatever is driving the bad dreams is simultaneously driving the body's cells towards the finish line. How might a scream you never utter leave a mark on your genome? Nightmares happen during so-called rapid-eye-movement sleep when the brain is highly active but muscles are paralysed. The sudden surge of adrenaline, cortisol and other fight-or-flight chemicals can be as strong as anything experienced while awake. If that alarm bell rings night after night, the stress response may stay partially switched on throughout the day. Continuous stress takes its toll on the body. It triggers inflammation, raises blood pressure and speeds up the ageing process by wearing down the protective tips of our chromosomes. On top of that, being jolted awake by nightmares disrupts deep sleep, the crucial time when the body repairs itself and clears out waste at the cellular level. Together, these two effects – constant stress and poor sleep – may be the main reasons the body seems to age faster. Close-up of CT scan of brain. (Source: The idea that disturbing dreams foreshadow poor health is not entirely new. Earlier studies have shown that adults tormented by weekly nightmares are more likely to develop dementia and Parkinson's disease, years before any daytime symptoms appear. ADVERTISEMENT Growing evidence suggests that the brain areas involved in dreaming are also those affected by brain diseases, so frequent nightmares might be an early warning sign of neurological problems. Nightmares are also surprisingly common. Roughly 5% of adults report at least one each week and another 12.5% experience them monthly. Because they are both frequent and treatable, the new findings elevate bad dreams from a spooky nuisance to a potential public health target. Cognitive behavioural therapy for insomnia, imagery-rehearsal therapy – where sufferers rewrite the ending of a recurrent nightmare while awake – and simple steps such as keeping bedrooms cool, dark and screen free have all been shown to curb nightmare frequency. Before jumping to conclusions, there are a few important things to keep in mind. The study used people's own reports of their dreams, which can make it hard to tell the difference between a typical bad dream and a true nightmare. Also, most of the people in the study were white Americans, so the findings might not apply to everyone. And biological age was measured only once, so we cannot yet say whether treating nightmares slows the clock. Crucially, the work was presented as a conference abstract and has not yet navigated the gauntlet of peer review. Despite these limitations, the study has important strengths that make it worth taking seriously. The researchers used multiple groups of participants, followed them for many years and relied on official death records rather than self-reported data. This means we can't simply dismiss the findings as a statistical fluke. If other research teams can replicate these results, doctors might start asking patients about their nightmares during routine check-ups – alongside taking blood pressure and checking cholesterol levels. ADVERTISEMENT Therapies that tame frightening dreams are inexpensive, non-invasive and already available. Scaling them could offer a rare chance to add years to life while improving the quality of the hours we spend asleep. Author: Timothy Hearn, Senior Lecturer in Bioinformatics, Anglia Ruskin University This article is republished from The Conversation under a Creative Commons licence.
1News
04-07-2025
- General
- 1News
How your emoji use reveals your age
Are your smiley faces sarcastic and is your thumbs up signal aggressive? If not you might just be a Boomer. By Brittany Ferdinands. Emojis, as well as memes and other forms of short-form content, have become central to how we express ourselves and connect online. Yet as meanings shift across different contexts, so too does the potential for misunderstanding. A senior colleague of mine recently encountered some commentary about the 'slightly smiling' face emoji: 🙂 They approached me, asking whether it represented joy, as they had assumed, or if it had a more ominous meaning. As a chronically-online millennial, who unironically identifies as a gen Z, I bore the news that I, along with most younger internet users, only ever use it sarcastically. ADVERTISEMENT 'It doesn't actually signify happiness – more so fake happiness, or dry humour,' I explained. I also told them how the thumbs up emoji is often interpreted as passive aggressive, and that the only time I'd use the laughing-crying ('face with tears of joy') emoji is under duress. Teen freaked out by Boomer's attempt at positivity. (Source: Despite seeming like a universal language – and sometimes they do function that way – emojis can be at once more vague, and more specific, than words. That's because you can't separate the meaning of a smiley from the person who sent it, nor from the person receiving it. Markers of age and identity While emojis were originally developed in the late 1990s by Japanese artist Shigetaka Kurita to add emotional nuance to text-based messaging, their function has since evolved. Today, emojis are not just emotional cues; they also operate as cultural symbols and markers of identity. ADVERTISEMENT Research published last year highlights how these symbols can create subtle communication barriers across age groups. For instance, a study of Chinese-speaking WeChat users found younger and older people differed not only in how frequently they used emojis, but in how they interpreted and aesthetically preferred them. A study of Chinese-speaking WeChat users found younger and older people differed in both emoji use and interpretation. (Source: One emoji that's increasingly becoming a distinct marker of age is the previously mentioned laughing-crying emoji (😂). Despite being named Oxford Dictionary's 2015 word of the year, and frequently topping the most-used emoji charts, this smiley is on the decline among gen Z – who decided in 2020 that it wasn't cool anymore. Instead, they prefer the skull emoji (💀), which is shorthand for the gen Z catch phrase 'I'm dead'. This means something is funny (not that they're literally deceased). Such shifts may understandably be perplexing for older generations who are unfamiliar with evolving norms and slang. A digital body language Emojis can also take on distinct meanings on different platforms. They are embedded within 'platform vernaculars': the ever-evolving styles of communication that are unique to specific digital spaces. ADVERTISEMENT For example, a thumbs up emoji (👍) from your boss at work is seemingly more acceptable, and less anxiety inducing, than from a romantic interest you've just sent a risky text to. A thumbs up? (Source: This dilemma was echoed in a recent viral TikTok by user @kaitlynghull, which prompted thousands to comment about their shared confusion over emoji use in the workplace. This reaction highlights a deeper communication issue. A survey of 10,000 workers across the US, France, Germany, India and Australia, conducted by YouGov and software company Atlassian, found 65% of workers used emojis to convey tone in the workplace. But while 88% of gen Z workers thought emojis were helpful, this dropped to 49% for baby boomers and gen X. The survey concluded some emojis can be interpreted in multiple ways, and these double meanings aren't always safe for work. In with the 'it' crowd ADVERTISEMENT Another example of platform-specific emoji use comes from social media content creators who deploy emojis to curate a certain aesthetic. Under the Tiktok tag #emojicombo, you'll find thousands of videos showcasing emoji combinations that provide aesthetic 'inspo'. These combinations are used to represent different online identities or subcultures, such as 'that girl', 'clean girl' or 'old money'. Users may include the combinations in their captions or videos to signal their personal style, or to express the mood or vibe of their online persona. In this way, the emojis help shape how they present themselves on the platform. This example of emoji use is also a display of symbolic capital. It signals social alignment, in an environment where a user's visibility (and popularity) is determined by their platform fluency. Emojis, then, aren't just tools for expression. They are badges of identity that index where a user stands in the online cultural hierarchy. There's a fragmentation in how we relate A single emoji might communicate irony, sincerity or sarcasm, depending on who is using it, what platform they're using it on, and what generation they belong to. ADVERTISEMENT This gap points to deeper questions around online access and participation, and the systems that shape online cultures. And when the meaning of an emoji is platform-dependent and socially stratified, it can become as much about fitting in with a cultural in-group than conveying emotion. Brittany Ferdinands is a lecturer in Digital Content Creation, Discipline of Media and Communications, University of Sydney. This article is republished from The Conversation under a Creative Commons licence.
1News
02-07-2025
- Health
- 1News
Rising rate of type 2 diabetes in young Kiwis 'becoming crisis'
No longer just a condition of middle age, type 2 diabetes is increasingly affecting children, teenagers and young adults in New Zealand. And our health system is nowhere near ready to manage this surge, writes Waikato University academic Lynne Chepulis. Type 2 diabetes is a condition where the body stops properly using insulin, the hormone that helps control blood glucose. Glucose then builds up in the blood. Over time, that can damage the heart, kidneys, eyes, nerves and more. This condition is more aggressive in young people. It progresses faster, causes complications earlier, and is harder to manage, often due to the accumulation of damage across their lifetime. People with young-onset type 2 diabetes also tend to die earlier than those diagnosed later in life. (Source: ADVERTISEMENT Our research looks at who has been diagnosed with type 2 diabetes across the Waikato and Auckland regions of New Zealand. From a dataset of more than 65,000 people with type 2 diabetes, 1198 were aged under 25 years. More than a quarter of people (28%) with diabetes under the age of 25 had type 2 diabetes (the rest mostly have type 1 diabetes – an unrelated autoimmune condition), up from less than 5% of this age group 20 years ago. Further, only one in four young people with type 2 diabetes meet their blood glucose (HbA1c) targets, meaning a higher need for more doctor visits, more medication, and more chance of serious problems later on. This rise in under-25s with type 2 diabetes has been flagged in recent years, but our research gives a clear picture of just how worrying the trend is. Shot of a hospital bed in an empty corridor of a modern hospital (Source: Even though all young people with diabetes have access to specialist care, healthcare access remains challenging for many, particularly Māori and Pacific communities, which are disproportionately affected. And the pressure isn't just on patients – it's on the entire health system. ADVERTISEMENT Young people with type 2 diabetes may need care, medication and effective treatment plans for the rest of their lives. That means higher costs for general practice, increased demand on diabetes clinics, and a growing strain on hospitals and emergency services. There are also rising wellbeing costs associated with young-onset type 2 diabetes. The morning's headlines in 90 seconds, including Australia's weather bomb, the surprising costs of getting one more dog, and BTS are back. (Source: 1News) These young people often miss school or work. They struggle with the emotional toll of living with a chronic illness. Some lose trust in a health system that doesn't always meet their needs, and for some it feels like the start of a long, unsupported journey. Addressing the deeper causes There's no one cause for young-onset type 2 diabetes. Obesity is a huge factor. Nearly 90% of young people in our research were overweight or obese, and childhood obesity has been rising in New Zealand for years. ADVERTISEMENT A man measuring his waist (file photo) (Source: Poverty plays a big role, too. It's harder for families with less money to buy healthy food or get access to regular healthcare. Health inequality in New Zealand also matters. Type 2 diabetes can be intergenerational, and children born to mothers with diabetes are at a much higher risk of developing the disease. Opportunities to turn this rising tide exist, but it needs a multi-pronged approach. That starts with addressing child poverty, making healthy food affordable and accessible, and making sure families have the support they need. Patients need to be well-supported right from their time of diagnosis. ADVERTISEMENT A child stares out from a window (file photo). (Source: 1News) This means culturally respectful care, better access to medications and tech and making sure no one is left behind just because of their postcode or their background. Managing type 2 diabetes in young people is also not the same as managing it in older adults. Clinicians need appropriate support to provide integrated care, including resources and programmes that are age-appropriate. Ideally, we also need to screen and detect those at high risk early on. Young-onset type 2 diabetes screening programmes have been effective in other countries such as the United States, but are not yet widespread in New Zealand. Timely screening of at-risk asymptomatic young people could catch type 2 diabetes early, delaying or even preventing serious complications. Yet right now, many young people are being diagnosed late. The increase in type 2 diabetes in young people demands serious investment, coordinated effort and long-term commitment. ADVERTISEMENT With better detection, smarter treatment plans, and a stronger, more connected health system, the problem can be addressed. Lynne Chepulis is an Associate Professor of Health Sciences at the University of Waikato This article is republished from The Conversation under a Creative Commons licence.
