Where's My Money Season 3, Episode 3
Out of Debt, on the Ladder – Getting in the Property Market
Season Three of the multi-award-winning podcast Where’s My Money? is done and dusted, and here we bring you the hot tips shared by host Reagan White and his guests over the season.
enable.me partners with rova to bring this podcast to life and stimulate the conversation about finances with everyday Kiwis. Where’s My Money? follows the story of Reagan – a man chasing the Kiwi Dream but feeling stuck living month-to-month – and his discussions with the experts about what he may be doing wrong and how to fix it.
One man. One million dollars of debt. One podcast to find a way out.
Is debt causing your financial freakout? In this episode of Where’s My Money? Vinnie Nand and Karen Beckham from enable.me get into the specifics of debt, and how it may be holding you back from getting on the property ladder.
Later in the episode, everyday Kiwi Challen Wilson shares how an enable.me programme and getting in control of her finances supported her long-term financial goals.
Setting your sights on a first home purchase
When thinking about purchasing a home, Karen shares that you first need to figure out “how much you need to save, and what you can actually afford.”
“Don’t set your expectations too high to start off with… your first home’s not going to be your forever home,” she says.
TIP: If your long-term goal is to buy a house, make short-term goals for your savings and make them relatable to you – for Karen that was drawing a house and colouring it in brick by brick as she saved – but for you that could be a budgeting app, a goal tracker, or sharing your progress with a family or friend.
To figure out if you can afford a mortgage payment amount, see if you can save the difference between the rent or board that you are paying and what your mortgage would be. If you can consistently save that extra amount, it could be an affordable mortgage payment for you.
For example, if you were to get an average first-home mortgage of 550,000* at 5.99% interest over a 30-year term, you would be paying $760 per week*. If you are currently paying weekly rent of $350, save the difference of $410 per week to test if you can service a mortgage of that amount without strain.
Reagan backs this up with his own experience, explaining that the bank approved them for a higher mortgage amount than he was comfortable taking on.
Vinnie discusses whether he thinks people should take opportunities to buy with just a 5% or 10% deposit, but he says in most cases it is wise to stick to the common 20% deposit.
“5% deposit will mean a higher repayment, and long-term repayment as well,” he says.
When thinking about your budget for repayments, Vinnie recommends using a mortgage repayment calculator – sorted.org.nz or a bank calculator – and set the interest rate as a high interest rate (8-9%), rather than the current or a lower interest rate. This gives you a buffer in your budget if interest rates were to rapidly rise while you’ve got the mortgage.
“When you buy a house, whether it is a small house or big house, it is an appreciating asset because the value will go up, eventually,” Vinnie says.
Once you have a house, Karen says to look at it as a long-term investment and not to obsess over the day-to-day value – especially when the economy feels like it is both bouncing around and controlled by a power outside yourself.
“If you control your finances, it doesn’t matter if somebody overseas does something… No matter what happens, try to insulate yourself from all of those risks that can happen,” she says.
If your goal is buying a house, the most important place to start is a budget and ensuring your stability to repay the debt you take on. This is the wisdom that Vinnie shares, ensuring that you get to grips with what is coming into your accounts and what is going out.
TIP: What you can afford may not be the same as what the bank is willing to lend you. They may lend you more than is optimal for your circumstances. It is important to run your own numbers to ensure you’re not biting off more debt than you can chew.
Getting in control of your finances
Vinnie and Karen discuss the importance of clearing credit card debt and any other forms of short-term debt if you are looking at applying for a mortgage – and in general when looking to improve your finances.
Both recommend to not get a credit card at all because of how easy they make it to get into unmanageable debt, spend more than you intend to, and have lower general wellbeing due to stress.
Challen Wilson, one of Karen’s clients, shares she started out at “ground zero.” At 44, and not understanding her relationship with money, she felt it was time to learn more.
She discusses how she reduced her fritter (wasted spending that doesn’t bring any more happiness) and found focus with her finances.
Part of this was looking at the support she was providing to her adult daughter and cutting the cord slightly to save for her own retirement. Her coach described it as “putting on your own oxygen mask first before helping others.”
“The biggest thing is… having the structure in my bank accounts, knowing what’s going out through APs, what’s being saved, and what’s the day to day,” Challen shares.
“That revolutionised my life.”
enable.me Founder Hannah McQueen is back at the end of the episode to answer some quick-fire listener questions about all sorts: KiwiSaver settings, buying a first home or an investment property, red flags with potential developers for new turnkey builds, downsizing life, and interest rates.
Disclaimer: The Where’s My Money? podcast and the information shared by host Reagan White and his guests does not constitute individual financial advice. If you’re interested in receiving financial advice, you can book a consultation with an enable.me coach. Costs apply.
*CoreLogic, May 2025
*Sorted Mortgage Calculator
Watch and listen to the full podcast episode below:
Disclaimer: The Where’s My Money? podcast and the information shared by host Reagan White and his guests does not constitute individual financial advice. If you’re interested in receiving financial advice, you can book a consultation with an enable.me coach. Costs apply.