Circumventing LVR restrictions

[brendan]

Auckland’s property market hitting new highs as investors find ways to circumvent restrictions.

...
Experts now say predictions the market would cool were premature, as investors found ways to circumvent controls.

Is that the Herald correct that investors have found ways to circumvent the LVR restrictions?

The options I know of are:
- Use a non-bank lender (but pay higher interest rate)
- Borrowing to 80% against your PPOR.
- Wait for your property to increase in value (not really circumventing the restriction).

What other options are there?

[PTILoveYou]

- using exsting equity as you mentioned
- borrow from parents/friends
- use parent's/relative/friends house/rentals as security
- non-bank lenders

I don't think credit cards will work anymore because banks are a lot smarter with credit check etc, and also deposit these days are so large.

[Damap]

Equity from parents/friends is the main one.
I am actually quite surprised the bank relaxed all this. You used to have to prove your own money was your own money, now it can come from anybody.

The point of the article however was that values are rising so fast in Auckland you get the extra equity you need very quickly from the properties you already own. Typical bad reporting to create a headline.

[Learning]

-I don't think credit cards will work anymore because banks are a lot smarter with credit check etc, and also deposit these days are so large.

Credit cards still work. I had $90k across 3 cards. Dropped it to $60k across two after the banks started to talk about tightening up but I had absolutely no trouble renewing them both. Too risky if you don't know what you are doing. Stuff up the numbers and you could lose the house.

[PTILoveYou]

Credit cards still work. I had $90k across 3 cards. Dropped it to $60k across two after the banks started to talk about tightening up but I had absolutely no trouble renewing them both. Too risky if you don't know what you are doing. Stuff up the numbers and you could lose the house.

Well 90k alone in Auckland won't buy much...

Maybe a home with 20% deposit...

[Learning]

Well 90k alone in Auckland won't buy much...

Maybe a home with 20% deposit...

Got ya, if you don't have an asset to offset with the credit card it won't work.

[brokerman]

Refi owner occupied to 85% and it's possible to go to 90% on a purchase, in Auckland. More expensive yes however if you not in the market you lose anyway. As a guide only....80% investment 5.15% fixed two years, 85% 5.65% and 90% 6.15%. This against 70% with the Banks at low fours for two years but this is irrelevant really as if one doesn't have the required deposit the Banks could be charging 1%, ya can't have it!