"In addition, some (but not all) finance companies raising funds from the public have accumulated large exposures to property and consumer finance. These institutions could be hardest hit by slowing spending; especially those that have recently experienced rapid growth and have limited experience in managing downturns. "New Zealand households have also been increasingly ready to purchase property for investment purposes.
Household indebtedness has increased significantly, so that over time households have raised their financial vulnerability to interest rate changes, unemployment, and swings in rental incomes and property capital values. On balance, the data suggest that the New Zealand household sector has continued to increase its financial concentration and overall debt exposure.