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Way to go Reserve Bank of New Zealand!!!
I see Graheme Wheeler is pleased with his LVR restrictions
"The existing loan-to-valuation ratio (LVR) restrictions “have substantially reduced the proportion of risky housing loans on bank balance sheets,” the central bank says."
He and his cronies must be sitting back and poping the champagne on what to them seems like a successful stratergy.. But what he has effectively done is make it that much harder for those who depend on the 10% loan deposit to make it into their first home..
Easy if your parents have a bit of cash saved up or locked away in a property... but if you happen to not be so privliaged then the goal is more unobtainable than ever.. with the introduction of the LVRs there was an addition of a hard limit of how many Home loans banks can issued to the public at 10% deposit.. so if your lucky enough to find that property and have the deposit for only 10%... you now have have a bit of a fight on your hands to secure the loan to make that happen... Lets knock out the bottom level of the property market! What a great idea!!!
It is the opinion of this citizen that we need to put a stop to massive investment in housing if your so worried about this sector! Not to allow people to continue to buy more and more investment properties and with less competition now you have effectively elminated first home buyers!
Source : http://www.nbr.co.nz/article/reserve...ased-jr-188812
Last edited by NeverQuestion; 11-05-2016 at 09:44 AM.
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Isn't it curious that the govt won't take a first step by following Australia in restricting non-resident property investors to new developments? It hasn't been a "silver bullet" for Oz but it should give supply a boost and stop overseas investors from helping to inflate existing house prices. Naturally, real estate agents, mortgage loan brokers, property investors' organisations and property management companies will tell us that it wouldn't work, but the problem needs a multi-faceted approach if first home buyers are to have a chance of ever owning their own homes.
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Originally Posted by macduffy
Isn't it curious that the govt won't take a first step by following Australia in restricting non-resident property investors to new developments? It hasn't been a "silver bullet" for Oz but it should give supply a boost and stop overseas investors from helping to inflate existing house prices. Naturally, real estate agents, mortgage loan brokers, property investors' organisations and property management companies will tell us that it wouldn't work, but the problem needs a multi-faceted approach if first home buyers are to have a chance of ever owning their own homes.
The problem in NZ is the supply of land. Can you imagine the howls of protest if finding somewhere to build became a competition with foreign buyers? Anyone can get a house built, we're not short of materials - but it's where to put it. There's consequences to this sort of policy that the Brits discovered years ago and Australia is about to. That is developments and sub-divisions quickly become undesirable areas without resident owners in the mix. Having whole subdivisions snapped up by foreign investors would lead to tenant dominated areas - not a good thing. I can't think of one good thing restricting foreign buyers to build new would achieve. After all, wouldn't NZ'ers leap into new building if land was available?
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Originally Posted by fungus pudding
The problem in NZ is the supply of land. Can you imagine the howls of protest if finding somewhere to build became a competition with foreign buyers? Anyone can get a house built, we're not short of materials - but it's where to put it. There's consequences to this sort of policy that the Brits discovered years ago and Australia is about to. That is developments and sub-divisions quickly become undesirable areas without resident owners in the mix. Having whole subdivisions snapped up by foreign investors would lead to tenant dominated areas - not a good thing. I can't think of one good thing restricting foreign buyers to build new would achieve. After all, wouldn't NZ'ers leap into new building if land was available?
It is too late - as it is, (relatively) cheap housing in South Auckland is increasingly being bought by investors, increasingly buying houses that would have been starter homes for first home buyers. There are already many areas increasingly dominated by tenanted houses. Unaffordable deposits for a first home in a (comparatively) cheap area are converting the younger residents into long-term tenants. For a start, the purchase of NZ residential land and housing should be restricted to NZ residents.
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Originally Posted by macduffy
Isn't it curious that the govt won't take a first step by following Australia in restricting non-resident property investors to new developments? It hasn't been a "silver bullet" for Oz but it should give supply a boost and stop overseas investors from helping to inflate existing house prices. Naturally, real estate agents, mortgage loan brokers, property investors' organisations and property management companies will tell us that it wouldn't work, but the problem needs a multi-faceted approach if first home buyers are to have a chance of ever owning their own homes.
Exactly had this be enacted years ago along with a strong Capital Gains tax structure 28% (IMHO even covering the family home if sold within 3yrs etc)... then instead of young and first home buyers being pushed out of the market by speculators ..those funds from esp overseas investors would have flooded into new developments
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
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Here's an nteresting dissertation on the Australian housing market. Worth reading.
https://dpsi7pmz5b6vt.cloudfront.net...-_May_2016.pdf
Last edited by macduffy; 13-07-2016 at 02:12 PM.
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Member
P.S I read an article somewhere where Americans are SERIOUSLY considering coming to live in NZ - quick shut the gates , ESPECIALLY if they are ex Wall Street Bankers LOL
\"if women didn,t exist , all the money in the world would mean nothing\" Aristotle Anasis.
\"The trend is your friend\"
\"A mans reach should always extend beyond his grasp" J.F Kennedy
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Originally Posted by SCHUMACHER
P.S I read an article somewhere where Americans are SERIOUSLY considering coming to live in NZ - quick shut the gates , ESPECIALLY if they are ex Wall Street Bankers LOL
And many NZ realtors are spending big in advertising to the Yanks ...along with many other's .....NZ is up for sale quick get it while its cheap
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
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Auckland houses will still sell at "reasonable" prices. It sounds as though expectations have yet to adjust downwards - but they will!
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