Start buying houses, says Kiwibank boss

New Kiwibank chief executive Paul Brock is urging potential first home buyers not to be spooked and to go out and buy, so long as they can afford to.

Brook told interest.co.nz that purchasing a first home was "almost a rite of passage for New Zealanders" and that potential buyers shouldn't be put off by concerns that house prices will fall, interest rates will rise or by a weak economy.

"I think at the end of the day there's no right or wrong time to get into the (housing) market," Brock said.

"The key is actually whether customers themselves can actually afford it, afford the loan. And that should be the primary driver."

Brock, who recently replaced Sam Knowles as Kiwibank's CEO, said he would be concerned if people were being put off home ownership. He noted the overall housing market had slowed down "quite a lot" and, although he didn't have the data at his fingertips, there was a feeling that first home buyers might be stepping out of the market.

"That's a bit of a concern really for New Zealand. From my point of view home ownership is really good," said Brock.

"It's one of those things that's both good for the individual to get started towards financial security, I think it's good for the country and it's also good for the community that people are owning their own homes."

To read the full NZ Herald article, click here

Posted: 14 Oct 2010

News articles