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Cash-poor, house-rich: The retirement dilemma driving reverse mortgages (www.stuff.co.nz)
submitted 2 months ago by to c/newzealand@lemmy.nz
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[–] [S] 10 points 2 months ago (6 children)

I thought it was a satire piece but then it just keeps going on. The comments are gold: boomers complaining about the price of shitty 2 bedroom apartments and refusing to downsize because it's inconvenient.

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  • [–] 9 points 2 months ago (5 children)

    It is accidentally a satire piece.

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  • [–] [S] 8 points 2 months ago (4 children)

    It's a bit of a bummer the mindset is around sending interest payments to banks instead downsizing and releasing property back into the market. I was hopeful there might be some kind of market correction as the boomers cash out on their "investments" but it seems like there will be no break for Gen Z and instead we can look forward to bank profits instead.

    I wonder what kind of dividends they pay?

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  • [–] 4 points 2 months ago* (2 children)

    About $1AUD per share for ANZ and Westpac for their upcoming dividend.

    Obviously the RoI is more complicated. But a S&P 500 index ETF is about a 12th of that per share.

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  • [–] 2 points 2 months ago (1 child)

    Per share isn't a good measure. You can split the same company into a hundred shares, a thousand shares, or a million shares. Cutting the pizza into more pieces doesn't change the size of the pizza.

    I don't have a good alternative but maybe % of value?

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  • [–] 4 points 2 months ago* (last edited 2 months ago)

    Yeah, that was the convenient metric I could put my hands on and bother typing out in mobile.

    S&P 500 ETF gross dividend yield 0.71%

    ANZ 5.22%

    Westpac 4.41%

    So the banks are considerably more profitable than the entire S&P 500.

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  • [–] 3 points 2 months ago

    Yeah, it sounds like they will just refuse to sell for less than what they think the house is worth, and would rather have all their equity slowly chewed up by compound interest.

    The kids can go fuck themselves.

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