Attitudes to money October 2015 - Attitudes to money RabODireCt Rabobank Your speria/ist savings bank TNS Summary Home ownership Rising house prices are a concern for most New Zealanders, especially those living in Auckland and the 18 to 29 age group. However, almost all 18 to 29 year olds still expect to own a home at some point in the future, moreover around half are expecting to buy in the next three years. There is very little pressure on kids (aged 18+) still living at home to move out, and over a quarter are expecting to save enough to buy a home before doing so. Parents tend to have a more realistic view and are simply waiting for their kids to be financially independent before moving out. Attitudes to money © TNS 4 Home ownership Attitudes to money . RaboDIrect - Ra?k Yoursperia/istsavingsbank TNS Rising house prices are of concern for most New Zealanders, with over half of Aucklanders very concerned Concern about rising house prices in New Zealand Region Very concerned 36% 44% 34% 42% 36% 57% Slightly concerned 52% 42% 49% 43% 48% 31% Not at all concerned Sample size 14% 11% 12% 16% 15% 17% Total Auckland Wellington Other North Island Canterbury Other South Island 1,882 250 250 652 250 480 Significantly higher than total Significantly lower than total Attitudes to money © TNS 28 … and over half of all 18 to 29 year olds very concerned Concern about rising house prices in New Zealand Age group Very concerned 44% 51% 45% 38% 43% Slightly concerned 43% 42% 42% 43% Not at all concerned 14% Sample size 7% 12% 40% 18% 17% Total 18-29 30-39 40-49 50-65 1,882 455 386 443 598 Significantly higher than total Significantly lower than total Attitudes to money © TNS 29 Among non-homeowners, saving for the deposit is the biggest barrier to owning a home Reasons for not owning their own home (Among those renting / boarding) 68% 51% 29% 14% Don’t have House prices Cost of living is Don’t want a enough deposit are too high too high mortgage 13% Renting is cheaper 11% 10% Interest rates Concerned are about unpredictable unemployment 10% Given up on ever owning 7% 3% Don’t want the I am not sure associated costs NOTES: 1.  Sample size n = 586 Attitudes to money © TNS 30 Almost all 18 to 29 year olds still expect to own a home at some point in the future Given up on ever owning a home (Among those renting / boarding) Age group 32% 10% 10% 13% 5% Total Sample size 586 18-29 30-39 308 136 40-49 77 50-65 65 Significantly higher than total Significantly lower than total Attitudes to money © TNS 32 In fact over half of 18 to 29 year olds are still expecting to buy in the next three years, albeit with some assistance from their parents Planning to buy in the next three years by age (Among those renting / boarding) Age group 24% of 18-29 year olds planning to buy are expecting to receive financial assistance from their parents Yes, in the next 12 months 46% Yes, in the next 2 years 9% 11% Yes in the next 3 years Sample size 53% 10% 12% 51% 13% 34% 14% 6% 6% 21% 25% 22% 7% 4% 10% 26% 31% Total 18-29 30-39 40-49 50-65 586 308 136 77 65 Significantly higher than total Significantly lower than total Attitudes to money © TNS 31 Comparing the attitudes of adult kids at home with that of their parents shows that there is little pressure on kids to move out Attitude to living at home / kids at home 32% either like or love living with their parents 52% either like or love that their kids still live at home 11% 6% Love it 21% 46% Like it Don't mind 61% Dislike it 47% Hate it 7% Kids (18+ and live with parents) 1% Parents (Have kids 18+ living at home) Significantly higher than kids Significantly lower than kids Attitudes to money © TNS 33 Over a quarter of kids living at home are expecting to save enough to buy a home, whereas their parents have a more realistic view and are simply waiting for their kids to be financially independent before moving out When expect to move out / kids to move out Never Other 7% 4% 13% 15% 13% 14% When I get married When I have saved enough to buy a home 9% 26% 7% When I'm in a serious relationship 7% When I am financially independent 22% When I find someone to rent with 13% 10% Kids (18+ and live with parents) Parents (Have kids 18+ living at home) 42% Significantly higher than kids Significantly lower than kids Attitudes to money © TNS 34 … which is reflected in the difference in expected age when moving out – kids expect to stay at home for longer Expected age to move out / kids to move out Kids (18+ and live with parents) Parents (Have kids 18+ living at home) Maximum 43 40 Average 27 25 Minimum 20 18 yrs yrs yrs yrs yrs yrs Significantly higher than kids Significantly lower than kids Attitudes to money © TNS 35