LVR restrictions 'could provide wealthy buyers with cheap properties'
LVR restrictions are one of the tools the Reserve Bank is said to be considering to tame the housing market, particularly in the Auckland.
But David Whitburn said governor Graeme Wheeler should not think of it as a magic bullet. “LVR restrictions will make it harder for first-home owners and investors to buy properties in Auckland as they will need to contribute more equity, and many will be unable to do this.”
He said LVR restrictions would slow growth in prices but would help wealthy overseas and New Zealand buyers to purchase properties at good prices.
Andrew King, president of the New Zealand Property Investors’ Federation said LVR restrictions could protect buyers from themselves to an extent.
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