Small investors pull back

Glen McLeod

Following the Government's housing market changes and the reintroduction of LVR rules, mum and dad investors and more recent entrants into the investment sector are beginning to pull back.

Craig Pope of Loan Market in Wellington has seen "60% less investor loans" in recent months, with activity balanced by a rise in successful first home buyer activity. 

"I think investors are reaching a point where it’s just too much debt to keep leveraging," said Pope. 

The same trend was noted by Glen McLeod of Edge Mortgages, who has noticed a decline in purchases among investors that have one or two investment properties.