Whoop whoop – we have our finger on the pulse! The RBNZ announcement today that bank’s will be required to hold more capital on high LVR (loan-to-value) residential mortgages is a smart move in the right direction. Something I’ve been ranting about for a while. Higher capital will reduce bank profitability on high LVR mortgages.
Pre GFC, Property Developers had mythical rock star type status. The public face of the industry was full of massive egos, fast cars, illicit drugs, and self-absorbed “beautiful people.” Intelligence has never been a prerequisite to be a Property Developer. During the last property boom, money flowed so easily out of dodgy finance companies you
Apartment lending is back with some banks lending up to 95% on an owner-occupied freehold apartment. This is an important step forward, especially for Auckland. Now we just need some Developers back in the game building apartments and town houses
Maybe. I just had clients miss out on a small 2-bedroom house in Sandringham on a half site that sold for $668,000. 3 months ago it would have sold for $625,000. 18 months ago $625,000 would have bought you a renovated 3-bedroom bungalow in the same area. In that lies the problem. Auckland has a
It has been mildly interesting having a skim through the productivity commission report and various commentaries. The issues have been obvious for the past 10 years and the fact we need a 260-page report from a productivity commission to tell us what we already know is ironic. A property’s value will be a function of