It’s been a full on year for property investors. First challenge was the introduction of LVR restrictions and the Government’s two year capital gains rule. Then came a tougher revision of the LVR rule applicable wherever acquired property. Also on investor’s minds is the the looming introduction of a debt to income ratio (DTI) possibly as early as this year. If that wasn’t enough to keep the investor mind active, the recent North Canterbury monster earthquake is sure to keep many a property owner awake at night.
On PropertyTalk.com a discussion has commenced on purchasing property in Wellington. It’s bad timing if you need to settle on property in the area right now. Banks want to know you’ve got insurance says one regular poster:
“I’m being told by my insurance advisors that companies are not issuing new insurance on any property in Wellington at the moment. My advisors are telling me that subject to no new events they expect to be in a position to start insuring in Wellington in a week or so.”
Wellington property owners have had a good run of it lately with steady increases in property values. The impact on the recent gains is not yet known and if there are no more major events little change is more likely. It’s the unknown that gives all property owners including investors the jitters.
2016 may just gone down as being New Zealand property investors annus horribilis.
This blog article was written for PropertyBlogs by Mobilize Mail.