Banks have been given an extra month to process their back log of Pre-approvals therefore from 1 October all loans new and pre-approvals will need to adhere to the 60% LVR restriction rules.
Yesterday the OCR moved to it’s lowest rate of two percent and the dollar rose more than a cent against the greenback. It could have gone lower too due to weak global conditions. The housing market is still in the line of fire for stronger measures and we know that means fixing the DTI (debt to income) ratio.
“The bank is consulting on stronger macro-prudential measures that should help to mitigate financial system risks arising from the rapid escalation in house prices,” Mr Wheeler said.
Property investors remain remarkably upbeat on PropertyTalk and PropertyTutors report their investor clients are still finding profitable property deals and occasionally there’s the odd property for sale that’s in good nick and not in need of the usual renovation before it can be on sold or traded.
News out today of New Zealand’s record immigration is pleasing property investors online especially as they can draw on equity within their portfolio to meet the 40 percent deposit they need to purchase a rental property.
Pre approved loans will be exercised by property investors over the next few weeks then there may be a period of slow down as we all get used to the new LVR restrictions. What has been evident on PropertyTalk over the years is property investors are resilient and they’ll try LVR work around solutions.
This blog article was written for PropertyBlogs by Mobilize Mail.