Black Monday

[troyvdh]

Rawz..the reverse mortgage product how is it wonderful ?

% rates at 10 average.

[moka]

https://retirement.govt.nz/policy-and-research/retirement-income-policy-review/2019-review-of-retirement-income-policies/home-ownership

Today (2019), about 12% of people aged 65+ are still paying a mortgage, and the same number are renting.
They’re eligible for Superannuation, but Super wasn’t designed to cover rent – it currently pays $411 for a single person; $632 for a couple. At that rate, it assumes you have housing sorted. Should Super be changed to allow for more people in retirement still paying for housing, or is covering our housing cost up to us? Māori and Pasifika have fared the worst – today only 35% of Māori and 20% of Pasifika own their own homes.

[Baa_Baa]

https://retirement.govt.nz/policy-and-research/retirement-income-policy-review/2019-review-of-retirement-income-policies/home-ownership

Today (2019), about 12% of people aged 65+ are still paying a mortgage, and the same number are renting.
They’re eligible for Superannuation, but Super wasn’t designed to cover rent – it currently pays $411 for a single person; $632 for a couple. At that rate, it assumes you have housing sorted. Should Super be changed to allow for more people in retirement still paying for housing, or is covering our housing cost up to us? Māori and Pasifika have fared the worst – today only 35% of Māori and 20% of Pasifika own their own homes.

You post something from five years ago, please get with the times, all those numbers have changed.

[clearasmud]

I have a $1m mortgage and just refixed. Payments going from $5100 a month to $7150 a month. Yikes. But strong household income and decent pay rises saves our bacon. Plus the odd dividend.

Those 65+ with mortgages… honestly how the heck does that happen. What was the price of a house for them back in their 20s/30s?? $10,000 or something? How have they gone through life and grown their debt all the way to 65+?

The reverse mortgage product. What a wonderful thing.

I am 65 and the houses in my late 20's were 50k to 200k not 10k.
10k to 20k houses date from 1970 and were mostly sold to the pre ww2 generation.

[alokdhir]

I have a $1m mortgage and just refixed. Payments going from $5100 a month to $7150 a month. Yikes. But strong household income and decent pay rises saves our bacon. Plus the odd dividend.

Those 65+ with mortgages… honestly how the heck does that happen. What was the price of a house for them back in their 20s/30s?? $10,000 or something? How have they gone through life and grown their debt all the way to 65+?

The reverse mortgage product. What a wonderful thing.

Having a big mortgage is not a bad thing in this world if one can afford it ...ie incomes can manage its costs ...its forced savings while building a long term asset with great leverage ...it has win win everywhere . I remember when my son was looking for his first home I advised him to go all out ie extend his budget as much as Bank allowed ...still he got $ 1.4 million mortgage out of his $ 2 million limit ...but at 30 and as his first home ...its still great ...got refixed recently but not that big a change like yours +40% ...he has investments and mortgage too ...mortgage helps with leverage best and leads to prosperity faster then simple investments

But I reckon having mortgage when your working life is diminishing fast should be worry ...boils more to bad planning. then anything else