New investors, tenants likely to bear brunt of RBNZ move
NZ Property Investors Federation executive officer Andrew King said that, while the RBNZ’s move had been signalled for some time, the policy decision had come earlier than expected.
He said that the new LVRs will stop a lot of people from buying new rental properties – which will impact negatively on the supply of rental accommodation, forcing rents up and making things harder for tenants.
“The RBNZ say they want house prices to go down but rental property owners are not causing the high demand. We have over half of New Zealand’s record migrant inflow settling in Auckland and that is the reason for the high demand.”
Further, property investors try not to buy at high price prices whereas first home buyers tend to buy according to their emotions, not by the numbers, which leads to higher prices, King said.
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