The RBNZ wants to see the sales data for February and March before assessing the effectiveness of their new measures that included the 70% LVR restriction for Auckland investment properties. New lending was at an all time high at $1.679 Billion for the week ending 4 March and the average size of loan set a new record. February property sales were up on the previous three months.
Tag Archives | OCR
There as been no change in the OCR however another cut is expected in 2015 and there maybe a further cut in 2016. Future movement in the OCR is said to be linked to the value of the NZ Dollar and right now the NZD is too high to maintain inflation at the target rate of 2%. A lower OCR will provide some upside for home owners with lower interest rates.
It’s no secret RBNZ is looking for suitable measures that target property investors to help cool the Auckland property market. Back in February 2015 property investors awaited news of a measure that would target investors with 5+ rental properties but the announcement did come.
Earlier this month the latest round of CVs for Auckland homes were released and they have caused quite a stir.
Most properties have gone up in value by quite a lot and home owners have been dealing with their mixed emotions.
Lower than expected inflationary figures suggest interest rates may hold for longer than anticipated.
A rise in the OCR was expected around March 2015 however economists are suggesting it may happen now.
For property investors it’s a good day when the Reserve Bank decides to hold the official cash rate. A hold on the OCR usually means interest rates also remain the same or drop and that of course is good news for anyone with a variable home mortgage loan or a fixed rate loan coming up for renewal.