Wellington Propertyscouts

Property Investors – Tougher Lending Restrictions - 19th Jul 2016

It was announced today that property investors will soon need a 40 % deposit under new lending restrictions. The new rules are an attempt to put a lid on spiralling house prices. 1 September is the date for the new loan-to-value ratios to come into effect but it is likely that banks will start before then.

In a bid to simplify the LVR policy, it has been proposed that the lending criteria will apply across the country, not just Auckland. The main effects will be seen in Auckland but it is thought that it will become more difficult for tenants to find rental accommodation as less people will be investing. Andrew King, chief executive of New Zealand Property Investors’ Federation said that a lot of people think that property investors are taking available properties away from first home buyers, however restricting the number of people that can purchase investment properties will just make life harder for tenants, as there are fewer houses available to rent.
Read the full article: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11677196

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