Auckland home prices are up more than 20 per cent in the past year. If you’re a buyer from China or the US, they’re not. The slump in New Zealand’s currency has made properties in the country’s largest city a bargain for foreigners, creating a headache for central bank Governor Graeme Wheeler, who has been…
Read MoreThe Reserve Bank (RBNZ) recently proposed a 70% LVR restriction for investors in the Auckland property market. While it was tempting to jump straight out of the gates with a comment, we thought it would be more useful to wait for the RBNZ’s discussion document and provide a deeper analysis of their announcement. In this…
Read MoreDespite what we might have called “pre-election jitters” dampening the market a tad, the housing market rebounded in October, and is lining up for a strong finish to the year. Increased mortgage lending that is recovering from 2 year lows, cuts to fixed mortgage rates, and net migration at record highs all provide strong support.…
Read MoreOnly two months since the reserve bank brought in new LVR lending legislation, they have amended their stance. New home builds will now be exempt from the lending restriction, which according to the Registered Master Builders Federation, will ensure the development of up to 5000 homes in the next year. This figure is only an…
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40% deposit requirement, what’s the impact… and what are your options?
Should investors be scared off by the Reserve Bank’s increasingly hands-on approach to the property market? Not necessarily, as there are upsides – it creates a safety valve against potential overheating, and gives rise to some innovative investment vehicles. As investors, we Kiwis are used to a relatively unregulated property market. We’re renowned for favouring…
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