Kiwi households now have a net worth of more than NZ$50 billion for the first time since financial assets were sent tumbling by the global financial crisis.
Latest figures released by the Reserve Bank, for the three months to March, show that Kiwi households had a net worth, not including house values, of NZ$51.878 billion.
This is NZ$3.995 billion, or 8.34% more than the net worth figure recorded for the year to December.
In the 12 months to March, Kiwi households boosted their net worth by weighty NZ$15.693 billion, or 43.37%.
The latest figures continue a strong recovery. As recently as December 2008, Kiwi households had a net worth of under NZ$13 billion.
But in case anybody feels like getting carried away, it is worth pointing out that as far back as 1998 New Zealand households had net financial assets of over NZ$52 billion, so, the current figures are to a large extent just repairing some damage from more recent spending excesses.
As at March, households had total financial assets - excluding house values - of NZ$245.885 billion, while total liabilities were NZ$194.007 billion.
In conjunction with the release of the March figures, the RBNZ has also now released the full figures - including house valuations - for the 2012 calendar year.
These figures show that Kiwis as at December 2012 had houses worth a combined NZ$655.468 billion, which was up NZ$40.86 billion, or 6.65%, on the figures for the previous year.
The net equity in those houses was NZ$477.392 billion, up NZ$34.604 billion, or 7.8% on the previous year.
As of the end of last year, the household disposable income was NZ$132.485 billion, up from NZ$129.967 billion.
Going back to the March 2013 figures again, notable increases on the assets side came from a rise in bank deposits to NZ$117.05 billion from NZ$115.187 billion in December, while in the 12 months to March, deposits were up by NZ$10.671 billion, or 10.03%.
Superannuation, life insurance and managed funds rose to NZ$76.829 billion in March from NZ$73.965 billion in December, while in the 12 months to March the figure was up by NZ$8.558 billion, or 12.54% - the figures doubtless boosted by increasing KiwiSaver numbers and the strong performance of sharemarkets.
New Zealand share investments directly held by individuals (as opposed to through managed funds) totalled NZ$21.717 billion in March, up an impressive 36.56% in the past 12 months.
On the liabilities side, total housing loans rose in March to NZ$180.774 billion from NZ$178.076 billion in December and in the year to March the loans were up NZ$7.811 billion, or 4.52%.
In the 12 months to March 2013, total household financial assets rose by NZ$23.67 billion, or 10.65%, while total liabilities rose by just NZ$7.979 billion, or 4.29%.
These figures suggest that, to date, the RBNZ has not had too much to worry about in terms of households looking to build up debt again, although more recent monthly data is suggesting that the appetite for credit is starting to increase.
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6 Comments
This is not as good as it looks, as this is around $2000 per adult , which is shockingly low
I have some questions
1) I have some Financial assets ,( NZX , ASX Shares, fixed deposit , foreign currency account ) but I also have some debt ( an overdraft secured against a property )I have a rough idea of my net worth , but that includes property. How does anyone know my "net worth" when even I am unsure precisely what it is right now ?
2) Does it include KIWISAVER as net worth, ie Kiwisaver can not have debt so its all nett ?
If it incudes Kiwisaver , then its a shockingly low figure when divided by 2,0 million KS members ayers it equates to about $2,500 each , which is terriblly low
But it's a good news story boatman....look at the big number...isn't it a whoppa....we're saved....we're safe...it's a recovery....just ask the 'surplus man' in the Beehive...all is well...repeat after me..."I will not look for errors, faults, humbug or blathering and I cannot see a debt mountain"
Don't you mean $20k. Or how did you work out your figures to get 2k?
Whatever, the competition for the discretionary dollar spent on vice products is hotting up - the government believes it's has preemptive right before it gets enveloped in clutches of the savings industry. Read more
NZ Lotteries has told retailers in its network to stop selling synthetic cannabis and party pills - products it fears could damage the Lotto brand.
"There's quite a lot of public outcry about these substances. It got to the point for me and my board that we no longer felt it was appropriate to have our brand associated with these substances," NZ Lotteries Commission chief executive Wayne Pickup said.
You have to laugh.
Latest figures released by the Reserve Bank, for the three months to March, show that Kiwi households had a net worth, not including house values, of NZ$51.878 billion.
# of Kiwi households - ~ 1,671,300
Hence net worth per household ~ $31,040
Enough to play the MoM game? Hardly
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