Why has the Reserve Bank targeted investors?
Reserve Bank Governor Graeme Wheeler said the RBNZ has been following the Auckland housing market and its dynamics closely.
Given Auckland house price inflation is currently at 17% per annum, there are record low rental yields of around 3%, and that house price to income ratios are up, the RBNZ believes investors are driving a significant amount of the market activity.
“We are worried about the impact of all this on financial stability. We don’t use words like ‘bubble’ but we are seriously concerned about the financial risk posed by the Auckland housing market.”
For this reason, from October 1, the RBNZ will require residential property investors, in Auckland, who are using bank loans to have a deposit of at least 30%.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[The Wrap] What the heck is happening at the FMA?](https://goodreturns.publit.io/file/c_fill,w_300,h_200/a6c3bc06-6401-44de-96e2-286c090e132d.jpg)