Give us a call: (09) 486 4719
btn book free consultation

Blog

Email me when new posts are made to this blog

New Auckland RBNZ Restrictions

May 14th, 2015.

We'll get a more comprehensive blog out in the next few days but the Reserve Bank yesterday announced a new restriction specifically targeting investors and aimed at just the Auckland market.
 
The key policy changes from yesterday's announcement are as follows:
 

  • Require residential property investors in the Auckland Council area using bank loans to have a deposit of at least 30 percent.
  • Increase the existing speed limit for high LVR borrowing outside of Auckland from 10 to 15 percent, to reflect the more subdued housing market conditions outside of Auckland.
  • Retain the existing 10 percent speed limit for loans to owner-occupiers in Auckland at LVRs of greater than 80 percent.
     
    A few thoughts which I will look to expand on later are:
     
  • Will this push prices up in areas like Hamilton, Tauranga as investors who get locked out of the Auckland market look elsewhere?
  • Will this create some buying opportunities for those with higher equity levels as there will be less competition in the market?
  • The rule change comes in on the 1st of October. How will the banks approach this between now and then?
  • Is the change in increasing the speed limit outside of Auckland actually going to do anything with the banks having a nightmare administering this as it is at the moment?
  • With this restriction and the introduction of higher capital requirements still to come in as another restriction aimed at the investor market in July is there an increasing likelihood of an OCR cut?
  • What effect could this have on rents?
Click HERE for the full RBNZ announcement article.

Comments

GET IN TOUCH FOR FREE, NO-OBLIGATION ADVICE ON YOUR NEXT INVESTMENT

“ *As a rule, we advise that you contact us as early as possibly to secure the most suitable time for your consultation.
Product Query

First Name*
Email*
Phone
 

CONTACT US

Kris Pedersen Mortgages Limited
+64 9 486 4719
+64 9 486 4711 (FAX)
info@krispedersen.co.nz

Skype: Kris_Pedersen    
Takapuna Office
 
388 Lake Road
Takapuna
Auckland 0622
Newmarket Office
 
Level 6
135 Broadway
Newmarket
Auckland 1023
Postal Address
 
PO Box 33650
Takapuna
Auckland 0740