Reserve Bank Macro-Prudential Tools

[Perry]

Six months since this thread had an airing. How are those RBNZ restrictions working? According the the REINZ: far too well.

[Viking]

Plenty of houses getting built in the BOP. Nothing cheap of course. Rentals settled down for now. Banks being tight arses with money in line with rules. Business slowing down. Thousands more cars on the road. No shortage of money for them.

Whats about to happen. Nothing much until the votes are counted.
Who knows when we will get a new Gov. and who it will be. Hopefully not a depressive like the last one.

One thing is certain. Banks are going to have money sloshing around soon. Not lending much so almost tomorrow rates are going to get cut. (ASB have started the ball rolling yesterday.)

If the LVR rules remain then rentals are going to be in short supply if no one dreams up a way to get around the rules. Rents will rise again.

They can free up all the land they like at this point in time but the stumbling block is the LVR. New houses are 5-600k and up. Even at 10% that's a big chunk of change for many so until there is a way to finance them no one can buy. 20% is an even bigger hurdle.
Older houses don't cost much less in places where people want to live.
I think that's why house sales and new consents are not that high.


"The 20 percent deposit requirement for first-home buyers should be scrapped for lower valued properties," says Geoff Barnett, National Manager of Century 21 New Zealand.
His comments follow similar calls from Barfoot and Thompson director Peter Thompson recently. Yesterday REINZ also called for a review on LVR restrictions.


We’ve got young couples in Auckland earning a quarter of a million dollars between them, who could easily service a mortgage but because of high rents and living costs, they struggle to save a big deposit. It’s over $200,000 in deposit just to buy the average Auckland home!"

http://www.newsie.co.nz/news/49523-exempt-firsthome-buyers-says-second-real-estate.html

The Reserve Bank introduced lending restrictions to help cool Auckland's housing market. Mr Barnett says with prices now normalising, Wellington officials need to review the suite of measures still in place two years on.




Agents of course are starting cry. No listings and no buyers. Than you Mr Wheeler. Now piss off.

[flyernzl]

Collateral damage. As usual, the unforseen consequences.

[Davo36]

Bad for FHB's, good for us investors

Bring on the crash and the bargains!!

[Bluekiwi]

Their is a new rental crisis about to hit soon that property managers are just gearing up for.
And that is unpermitted rental properties.
And that is anything unpermitted, so possibly 10 to 20% of properties, as this also affects Health and Safety issue factors such as decks, concrete area's, converted basements to extra rooms, you name it, with the new law's about to hit, its going to be a battle ground.
Labour and Winny get in and those rules are bolsted further, it is going to take a really huge chunk of rental stock out of action.

You think leaky building and earthquake strengthening and insurance issues are big.
This is just another monster on the horizon for property.

BTW The LVR rules are a Red Herring, it is the "Stealth Credit Rationing" that has been around for 9 months that is only hitting the media now.
That has hammered all potential buyers of property, no more money from banks, no buying houses.
Supply and demand they put up rates for that limited supply of funds they can lend and they how they make their profits from lower volumes.

[Wayne]

Collateral damage. As usual, the unforseen consequences.

I don't think it was unforseen by the RB.
I think it was just what they felt they had to do.

[Davo36]

I think they're probably quite happy with the way things are going. But still with fingers crossed we don't have a bubble bursting.

[Beginner1]

Best thing for most of us would be No more DTI...

[Perry]

It's happened. Sort-of.

[Bluekiwi]

Best thing for most of us would be No more DTI...

Good work bro

[Perry]

Nearly five years later. How's it all looking, now?

[Perry]

Tarred and Feathered They Flock Together

Six years on and another reason why there is a shortage of cheap, taxpayer-subsidised housing, never mind affordable homes or renter-friendly-priced private residential rentals.

Macro-prudential?
Micro-prudential?
Bull-shit potential?

I've said it before:

National said there was no housing crisis so did nothing;
Labour said there is a housing crisis but achieved nothing.

Well, I never!

Vote 'em back in so they can make the mess even bigger.

[Cpt707]

Well spoken Perry. "...Never lie to someone who trusts you...and Never trust someone who lies to You..." September 19 will for sure be a total waste of effort.

[McDuck]

Well spoken Perry. "...Never lie to someone who trusts you...and Never trust someone who lies to You..." September 19 will for sure be a total waste of effort.

Never lie about a Trust.
Then again, the Cayman islands depend on that.
And technology giants' tax plans.

[McDuck]

Never lie about a Trust.
Then again, the Cayman islands depend on that.
And technology giants' tax plans.

and.. what if you are looking after a fiend's budgie.
They are away in another town sitting important exams.
And just before an exam they phone you.
They ask about the budgie.
Which has accidentally found its way into the neighbour's cat's mouth. Rip.
Do you lie and betray their trust? Or tell the truth and ruin their exams.(They love that little bird)?