I checked his facts and median in 2021 was $397,000. If a lot of that is home ownership then its 40% non useable through and the rest is effected by interest rates.
I am a New Zealander in my 50's. But have not lived in NZ since my 20's. Per these numbers, as an individual, I fit in the top ~2%. So I guess that means I am wealthy. The thing is, while there are probably a few who make their money living in NZ, I doubt many have. I am almost certain I could not have have grown my wealth like I have had I not left NZ in my 20's. If you want to be wealthy the best advice is to leave NZ. It is way easier to grow wealth overseas. London. Singapore. New York. Where ever takes your fancy. Let's face it. Salaries in NZ are very low. Taxes are very high. The NZD has been in decline for around 50 years now. New Zealand was once a rich country. That was 50 years ago though. $7.59m sounds a lot. But with the deline in the NZD it is not that much on the "international stage". So to anyone in their 20's today - my advice - get on a plane with a one-way ticket.
I was just observing people disembarking from a plane and became aware of my natural inclination to compare myself... I thought to myself, we would all be a lot happier if we aimed for contentment without coveting the Joneses. Having said that, I always enjoy the data led stories Ed. An interesting follow up would be to see how we stack up on a global scale. I've always said that just about everyone in New Zealand is in the top 5% of the world's wealthiest people. It's an interesting perspective that would be even more interesting if you amended it with some data! 😊
Learn to live low key. Run a surplus, invest this over the long term. Property, to shares and when you hit the wholesale investor threshold you can get into startups and private equity. Just do it consistently and long term.
The wealth gini in NZ is 0.76 showing how incredibly unequal the country is with: a) 100,000 households in energy poverty b) 100,000 homeless (wide HUD definition) c) one of the top rent/income ratios in NZ. d) 5,760,000 food bank users per year Most of the wealth in NZ is bid up land values. A recent estimate is $500bn that has been poured into totally unproductive property rather than productive businesses that create real wealth. A completely unfair tax system distorted towards property investment and lacking comprehensive capital gains tax, gift tax and inheritance tax completes the horribly distorted NZ landscape.
A regional breakdown of this information would be interesting to determine if certain regions support a higher per capita representation of the most wealthy,
Lots of people might be millionaires but many million dollar houses are cold , damp, unhealthy shacks. The reason houses are so expensive is because there simply aren't enough. That may make you rich on paper, but you still live in a shack. Don't try to translate the dollar figure to countries that are actually rich. Investing in RE in NZ only works as long as there are new immigrants coming in, and we refuse to build houses for them. That's our true wealth.
One thing to note is that the data provided is from May 2021. Since then, asset prices have moved significantly. Given that we are now in July 2024, that's a period of 3.2 years. Assuming assets have appreciated just by the rate of inflation, there would be a 19% increase in values. Consequently, your top 20% value of $1.15 million would now be approximately $1.37 million, your top 5% value of $3.15 million would adjust to around $3.75 million, and your top 1% value of $7.59 million would increase to approximately $9.03 million. But Asset prices increased by far more than inflation... But its even more likely that those data points have spread even wider, with the top 20% having a higher portion allocated to NZ Property than the top 1% which will have greater global exposure which has performed better in recent years. Food for thought.
Divorce and relationships are the great destroyer of wealth. Consider housing, debt and the interest paid on 2 houses with mortgages vs 1 house without debt...
Rich and wealth is totally different. John Key and Mr Luxon are wealthy. Rich is material things, cars, watches, clothes etc…. Wealthy is ownership, asset and control of assets…
talking only about a home? which simply tells us how expencive it is to get one .. also these are the percentages of what group ? 16 to 100 year olds ??
It would be good to break down further because it doesn’t reflect number of people and working people or if their financials are joined. A lot of people rent (even when they own other properties). In these stats it doesn’t reflect the money pool for the house
Yes it is. I’m 74 and a have just retired after 52 years in real estate, someone said something about statistics being damn lies and this, while being generally the truth, is not the total picture in regard to wealth. What I can say though, is that while property investment is a sure way to wealth on one hand, tenancies become the sure road to financial struggle on the other. Is there a way to fix this, yes there is and I have written to every housing minister since Dr Smith with zero response. There is absolutely a place for property investment but there is also a place for equity sharing, spreading the loot around if you will. But I’m not sure I can be bothered really, it’s just too hard.
Is too simplistic to just consider the value of your home. Why ? Because it is an asset that has negative cash flow (rates, maintenance, etc). You can't eat your house. If all your net worth is tied up in your house, and you have no other source of income, then you are going to starve to death.
I find it sad that houses are by now so overpriced that everyone owning one is a millionaire. With an average wage, it is pretty much impossible to enter the market and the rates become crazy due to the bloated RVs. Cost of living is high. Sorry mate, I understand what you are doing, but almost all people I know struggle. Yes, they are millionaires on paper but what’s that good for when you can’t cash out and use the money.
Good for people's egos. Until they travel and see that people with less dollars to their name have houses with double glazing and central heating. Streets with no potholes, public transport that works, more doctors and nurses per capita, better schools and universities... Wealth is not the number next to the dollar sign, it's what goods and services you can buy with it.
@@paulleighton7078 wow. Really? So a decent house in Nelson comes in at 800k. Deposit of 20 Percent is 160k. Not sure how many mid 20th can save that. Mortgage for the rest 640k which means about 60k pa in repayments. Which is not much less than the average salery in NZ. Auckland is a lot worse. Than considering inflation I don't see a way many young kiwis will be able to afford an own house in the future.
So with my now ex wife I we were in the top 5% after the divorce I'm in the top 20% and she is in the top 10%, so just remember that divorce is costly and not fair. We did it through property investment and business and we lived as cheap as we could for about 17 years. I guess it will take me another 15-20 years to build up again. I don't think my wife will gain much unless she remarries well
You need to get your reality checked. Why don’t you talk about thousands and thousands of people losing their jobs since the beginning of this year? NZ is getting poorer and poorer and the money has gone into the pocket of the top 1%
