Kia Ora!
In this newsletter –
Hot tip of the month –Don’t use hot water to clear the ice on your windscreen!!
Did you know – Loch Ness contains more freshwater than all of England’s lakes combined
First-home buyer tips – You could be a second chance first-home buyer
Property – Property values typically double in 10 years, so what if there is a drop?
Investments – Getting through the ups and downs
Banks – Lower long-term rates – should you use them?
Reserve bank – OCR held steady in July, with an expected drop in August
Insurance – Have you made sure the right person gets the payout?
Business – Protect yourself from wearing the cost of another company’s liquidation
Hot tip of the month
Don’t use hot water to clear the ice on your windscreen!!
Think twice before reaching for the kettle! Pouring hot water on an icy windscreen might seem like a quick fix, but it can crack the glass instantly due to thermal shock.
Better basics: Use a proper ice scraper, de-icer spray, or start your car early with the defroster on. Your windscreen — and wallet — will thank you.
Did you know?
Loch Ness contains more freshwater than all of England’s lakes combined
Located in Scotland, Loch Ness holds more freshwater than any other British lake at a volume of 7,452 cubic meters! If any lake could hold a mythical dinosaur-like monster, it’s this one.
First-home buyer tips
You could be a second chance first-home buyer
How can you be a first-home buyer if you have previously owned a property? Life isn’t linear; you may need to sell your home and go back to renting or move in with your folks. If this happens, you may find yourself without a big enough deposit to purchase your next home.
In that situation, if you didn’t use your KiwiSaver to purchase your home the first time around, then you may be able to use your KiwiSaver to purchase your new home. All you need to do is check your eligibility through your KiwiSaver provider. If you need assistance with this process, reach out to Elise; she’s happy to help. You may be closer to purchasing your new home than you thought!
Thoughts from Elise
I started July off down in Lake Hawea for the week and then came back to a very full-on time. Winter is not a slowdown period for us!
There have been some changes in the BoB office. Rebecca has, unfortunately, moved on to a new role elsewhere, and we wish her all the best with her new endeavours. While we are sad to see Rebecca go, we are happy to welcome Rhiannon (Rhi) Rowley to Team BoB. Rhi has joined the team as my EA (executive assistant) and is already shaping the way that I work to build in some more efficiency and free up my time so I can do more of what I love, which is supporting you to achieve your financial goals and to live with choice and peace around your finances.
At home, Sarah and I are making progress with the prep for the building works and have booked the next lot of work in for August, which we are excited about – switching from gas hot water to a heat pump hot water system. Typically, they use around 60 to 75% less electricity than conventional electric hot water systems and are a cleaner option than our current gas system.
Lyttelton Harbour Business Association have a breakfast networking event at 9 am on Wednesday, 20th August. There will be some great speakers; come and join us to hear from Felicite Jarden from the Whakaraupo Emergency Hub and Hamish Fairburn from Conservation Volunteers NZ. Click here to book.
Wishing you all well for the second half of the year, the first seven months have flown by. I’m looking forward to the longer days and warmer temperatures!
Property
Property values typically double in 10 years, so what if there is a drop?
Property is an emotional investment when it is your home or your crib (bach if you are in the North Island). It is also a long-term investment, unless you are trading property, and/or a developer. Properties typically double in value every 10 years, and the statistics in the latest Cotality Monthly Housing Pack show this to be true on average.
So, should you care if there is a drop in the market value? Here are the three times it matters:
- You need to sell due to an unexpected change in circumstances, such as a relationship change or a job move. However, if you’re selling and buying in the same market, there should be little to no impact.
- You need to access equity from the home for:
- renovations
- a deposit for an investment property
- a business opportunity
- a new vehicle or to refinance consumer debt.
- You want to retain special interest rates or avoid having to use the standard rates
Unexpected changes of circumstances are like accidents; they are not things that you can plan for. When your circumstances change and you are forced to make changes, we have ways to reduce some of the potential costs. Make sure you get us involved as soon as you suspect that something may need to change, and we can help you evaluate your options and reduce your stress.
The number of property listings is down, as per the normal winter quiet period. It may be a great time to put your property on the market as buyers have few choices, meaning you may be able to demand a good price.
Investments
Getting through the ups and downs
Markets are showing signs of recovery, with global tech stocks leading gains and NZ sectors like dairy and commercial property benefiting from easing interest rates.
Highlights:
- Global equities are up, led by AI and innovation
- KiwiSaver changes prompt smarter saving strategies
- Agri-tech investment gaining momentum
Tip: Stay diversified and focused on long-term fundamentals—especially in uncertain times.
Banks
Lower long-term rates – should you use them?
All banks now have their two-year rates under 5%, with two of the main banks also lowering their three-year rate to under 5%. The lower rates are helpful, but only take advantage of the low, longer-term rates if you have certainty of your situation and you have no intention to sell and downsize your debt.
The lower rates may be a bit late for many. According to the latest industry data, financial hardship cases rose to 13,850 in July, marking a 27% year-on-year increase, with nearly half linked to mortgage payment difficulties.
This surge reflects the ongoing pressure from high interest rates and cost-of-living challenges.
The Reserve Bank of New Zealand (RBNZ) confirms that mortgage repayment deficiencies—cases where borrowers fall short of scheduled payments—have persisted across recent quarters. In Q1 2025 alone, repayment deficiencies totalled $180 million, while net write-offs (loans deemed unrecoverable) remained low but steady.
Reserve Bank
OCR held steady in July, with an expected drop in August
As expected, the OCR held steady at 3.25% on the 9th of July. The next review is due on the 20th of August, with the Reserve Bank of New Zealand indicating that they will drop the OCR then.
Inflation is back in the headlines with the rate back up to 2.7% from 2.5%. Key contributors to the increase were local authority rates, winter energy and some food inflation. On the other hand, petrol prices have fallen by 8% for the year.
Elise’s crystal ball is suggesting that the banks will likely pass on any further rate cuts to the floating rates and there will be very little movement on the fixed rates. In July, the Reserve bank indicated that they see the rates holding flat for at least twelve months so it’s hopeful that we will have some long-term certainty, something that has been lacking.
Insurance
Have you made sure the right person gets the payout?
Do you have the beneficiaries correctly noted in your insurance policies? Circumstances change, and sometimes that means your insurance beneficiaries need to also.
Car and house insurance is easy: if something happens, you receive the payout to get repairs or a new car/house. Personal insurance is a little more complicated, as sometimes the payout needs to go to someone else. It may be that you are no longer around to ensure the appropriate person gets the payout.
Less than 50% of New Zealanders have wills, a scenario that can further complicate things and delay access to the insurance money. Insurance is all about ensuring that the right people have access to money when they most need it, so take the time in August to check that you have your policy ownership in the right names, along with the appropriate nominated beneficiary.
Business
Protect yourself from wearing the cost of another company’s liquidation
According to the Companies Office, 2,500 companies were put into liquidation in 2024, which is the highest number in a decade. Liquidating a business is not always bad news, as it is the way for a company to close down. When a business goes bust and is put into liquidation, not all creditors are treated equally. If you are a priority creditor, you may be entitled to repayment before others, especially for things like unpaid wages, holiday pay, or certain taxes.
Creditor Tips:
- Check your contracts and payment terms
- Understand your rights under NZ insolvency law
- Keep records tidy—proof matters when claiming priority
Knowing your status could mean the difference between recovering funds or writing them off.
We are always available for a chat about your situation.
Book a meeting or send us an email.
Until next time,
Elise and the Team