Wellington Property Investors' Association

04 472 9877 answerph

wellington@nzpif.org.nz

News & Updates

Recent updates

07-11-2013

Investors unfazed by LVR rules

Landlords.co.nz

Nine out of ten investors think the new loan-to-value restrictions will have no effecr on their buying behaviour over the next year, Crockers research shows.

Its latest market research asked landlords about the rules, which came into force at the beginning of October.

Banks are now able to lend only10% of their loans to people with a deposit of less than 20%.

Just 9% of the property investors surveyed said they would buy fewer properties as a result of the rule change and 1% said they would buy more.

Just over half felt the rules would do nothing to alter the trajectory of house prices, which in Auckland are increasing at a rate of more than 13% a year.

Another 30% said prices would still increase but the rise would be slower and 19% said prices would decrease.

When asked what effect the rules would have on rents, the results were evenly split.

Just under half thought rents would increase and the same number thought they would be unaffected.

Only 4% thought rents would decrease.

Source: Landlords.co.nz

comments powered by Disqus