Tighter LVR restrictions might feel like the end of the world for first home buyers right now, but the good news is these measures are only ever temporary. Here are our tips to give you the best chance of success under current conditions.
With investors backing off it is understandable that the pace of increase in house prices has slowed down. In the six months to September 2020, average house prices around New Zealand rose by just 4%, including a 3% fall over the April-May months.
Economy expert Tony Alexander discusses the latest results from his surveys of mortgage advisers and real estate agents, plus how a change in LVR restrictions will affect New Zealand's housing market.
In March the Reserve Bank will reimplement LVR (loan-to-value ratio) restrictions on property investors. This will mean lending for investment properties will be required to have a 70% or possibly 60% loan-to-value ratio.
Banks were actually already lobbying the Reserve Bank to reinstate LVRs because of their concern about the speed with which house prices were rising and the frenzied level of market activity.
There’s been a lot happening here at the Squirrel garage and lots of movement in the financial world, so here’s an update on quite a few things.
Growing house construction is a substantial boom for the economy through extra business for materials manufacturers and distributors, architects, inspectors and so on.
The new year is almost upon us and with it comes the usual new year’s resolutions which may or may not end up becoming reality.