Some good points in this article.
Four reasons not to panic about a property bubble
Most commentators are saying that the property market is cooling and that the Reserve Bank's tools such as the LVR changes, the interest rate rises are working. So why does the Reserve Bank have to kill the market by increasing floating rates to 7-8%??
I just can't understand the overkill? It's as if the RB wants NZ people to suffer!
- makes it harder on business as finance costs more
- makes it harder on renters as rents go up
- it makes it harder on home owners as they could be paying another $10,000 a year on a $500k loan
- Exporters, including farmers, are going to find it hard as our dollar is going up, making their product more expensive overseas.
The new rules on 5+ properties doesn't seem very well thought out. As most investors with 5+ properties are in a strong position and are lower risk than the average first home buyer. So penalising 5 + property investors because of higher risk just seems a joke. I listened to ANZ speak about this a couple of weeks ago, and they still didn't know how these rules would play out!
If Auckland and Christchurch house prices are the issue, why not just increase their interest rates 0.5%?
Ross
Four reasons not to panic about a property bubble
Most commentators are saying that the property market is cooling and that the Reserve Bank's tools such as the LVR changes, the interest rate rises are working. So why does the Reserve Bank have to kill the market by increasing floating rates to 7-8%??
I just can't understand the overkill? It's as if the RB wants NZ people to suffer!
- makes it harder on business as finance costs more
- makes it harder on renters as rents go up
- it makes it harder on home owners as they could be paying another $10,000 a year on a $500k loan
- Exporters, including farmers, are going to find it hard as our dollar is going up, making their product more expensive overseas.
The new rules on 5+ properties doesn't seem very well thought out. As most investors with 5+ properties are in a strong position and are lower risk than the average first home buyer. So penalising 5 + property investors because of higher risk just seems a joke. I listened to ANZ speak about this a couple of weeks ago, and they still didn't know how these rules would play out!
If Auckland and Christchurch house prices are the issue, why not just increase their interest rates 0.5%?
Ross
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