yes i wondered if the restrictions will simply slow what is being reported as sounding like an investing frenzy?
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yes i wondered if the restrictions will simply slow what is being reported as sounding like an investing frenzy?
It will....the sentiment. Residential property sector was really encouraging and positive in the last couple months n helps the sentiment of retirement sector and other properties stocks.
Not sure...once it reinstated...then result can be seen....no one here expected real estate is so hot post lockdown.
Clearly Mr Orr did not expect kiwis returned and all brought thier money and bought the property
If lvr restrictions are introduced it will definitely have an effect on house price rises. Hence why retirement stocks selling off
a study by the rbnz said so
The Reserve Bank’s initial estimates, published in a recent Analytical Note, are that LVR restrictions will result in 3-8 percent fewer house sales, 1-4 percentage point lower house price inflation and 1-3 percentage point lower housing credit growth over the first year that LVR restrictions are in place, than would have otherwise been the case.1
https://www.rbnz.govt.nz/financial-s...r-restrictions
looks like the smart money got out just at the right time .... 1.20 here we come lol
I think you may have jumped the gun on saying now is a goodtime to get out Bull. There will be short term volatility with the US elections and rising Covid cases overseas but this also presents opportunity on stockslike OCA.
Even if the Reserve Bank introduce tighter LVR restrictions,there are two questions. When will this happen and by what degree. I believe they will introduce tighter LVR restrictions early next year but it will be moderate, as to not scare the market. Property inflation will still be feeding throughto OCA for the short to medium term IMO.
One thing with the Oceania share price in the mid 130's is that we can take solace with is that it's about what professional analysts come up with - even more so if we discount Forbars outrageous bullishness a little
Can't argue with professionals ..so things not too bad at the moment
I’m looking forward to upgrading my space bar button withthe proceeds from OCA. Might even splash out on a new keyboard.
Glad to hear you have a dictionary Bull.
LVR restrictions were only lifted to combat Covid19 in May 2020 and are being reviewed in May 2021; anyway it was a temporary removal.
Overall housing market being stimulated by cheap interest rates that look like they will get even lower with FLP.
Banks still running 6-7% test rates for servicing affordability. Some banks haven’t even offered 80 LVR for investors so I’m doubting even if they are put back on early by Orr it’s going to make much difference while we are seeing historically low interest rates.
I mean what are Mum and dad investors that have a tidy sum in the bank going to do when the return on a rental property is far superior to the nominal bank interest they are getting?
I forgot to add all those old folk in retirement units earning no interest on there term deposits going mad due to rolling lockdowns , trashing the retirement units etc some smoking P etc. retirement unit costs for maintenance etc likely to go up for operators