Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

LVR starts today. Industry skeptical.

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • LVR starts today. Industry skeptical.

    Industry are skeptical the LVR will have much effect?


    KELVIN DAVIDSON of Core Logic says the restrictions are unlikely to do much.

    BRUCE PATTEN of Loan Market Brokers says the loan restriction won't make much difference.


    Thoughts?

  • #2
    Gotta be seen to be punishing those naughty speculators!
    Transformational Government at work.
    The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

    Comment


    • #3
      Say I had a spare MILLION in CASH.

      With a 20% deposit I can get 5 properties.

      With a 30% deposit I can get only 3.

      So that's going to slow me down 3/5ths.

      But, how many investors have that much spare?

      Comment


      • #4
        As usual you have to look beyond the norm. These restrictions will apply to the banks of course and no-one knows how many investors will be affected, my view is not a high %. To add to the mix there are non bank options, outside of RBNZ, as they funded off-shore to 80%.
        www.ilender.co.nz
        Financial Paramedics

        Comment


        • #5
          Are us naughty "speculators" driving the market higher?
          Personally I can only afford to buy something that makes economic sense. A bargain that can wipe it's own nose.
          Can't compete with the Government spending $750M to snap up houses at full market value.
          Can't compete with those dastardly FHBs that pay too much.
          But I guess that isn't part of the narrative.
          The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

          Comment


          • #6
            Originally posted by McDuck View Post
            Industry are skeptical the LVR will have much effect?


            KELVIN DAVIDSON of Core Logic says the restrictions are unlikely to do much.

            BRUCE PATTEN of Loan Market Brokers says the loan restriction won't make much difference.


            Thoughts?
            It will to those that don’t have 40%
            "DEBT BECOMES IRRELEVANT WITH INFLATION".

            Comment


            • #7
              Originally posted by Frezzinghot View Post

              It will to those that don’t have 40%
              What groups are those?

              Comment


              • #8
                I’d say, ma and pa investors, newbies that don’t have the equity yet in their own home.

                for the long in the tooth investors it’s business as usual.
                "DEBT BECOMES IRRELEVANT WITH INFLATION".

                Comment


                • #9
                  Originally posted by Frezzinghot View Post
                  I’d say, ma and pa investors, newbies that don’t have the equity yet in their own home.

                  for the long in the tooth investors it’s business as usual.
                  1. Does a 40% LVR apply to newbies?
                  2. Wouldn't Ma and Pa investors have at least 30% equity in their own house?

                  Comment


                  • #10
                    Originally posted by McDuck View Post

                    1. Does a 40% LVR apply to newbies? Yes if buying an investment property
                    2. Wouldn't Ma and Pa investors have at least 30% equity in their own house? Depends where they are and when they brought. A ma and pa investor who brought in 2020 would not have enough equity to service a 40% deposit, unless they pay cash
                    As above quoted
                    "DEBT BECOMES IRRELEVANT WITH INFLATION".

                    Comment


                    • #11
                      Originally posted by Frezzinghot View Post

                      As above quoted
                      Hmmmm.

                      Donald Trump and his wife are parents, yet they wouldn't be what was meant by Ma & Pa investors.

                      If you get a married couple diving straight into a second property straight after purchasing their first home,
                      I'd say they were not what is meant by Ma &Pa investors.
                      It's almost as if your trying to hide a poorly considered statement with a technical out.

                      Comment


                      • #12
                        Originally posted by McDuck View Post

                        Hmmmm.

                        Donald Trump and his wife are parents, yet they wouldn't be what was meant by Ma & Pa investors.

                        If you get a married couple diving straight into a second property straight after purchasing their first home,
                        I'd say they were not what is meant by Ma &Pa investors.
                        It's almost as if your trying to hide a poorly considered statement with a technical out.
                        It’s not too hard to decipher is it Mcduck, especially from an educated background, me I’m more of a lamens type of guy.

                        here this explains ma and pa.



                        What Is a Mom-and-Pop Establishment?


                        "Mom-and-pop" is a colloquial term used to describe a small, family-owned, or independent business. Mom-and-pop stores are often operations that struggle to compete with more substantial establishments, such as big-box retailers, who generally boast more buying power than smaller players. In the last few years, "shop local" and "shop small" have been used as slogans in marketing campaigns. The term "mom-and-pop" also refers to inexperienced investors who casually play the market.



                        "DEBT BECOMES IRRELEVANT WITH INFLATION".

                        Comment


                        • #13
                          Originally posted by Frezzinghot View Post
                          It’s not too hard to decipher is it Mcduck, especially from an educated background, me I’m more of a lamens type of guy.

                          here this explains ma and pa.



                          What Is a Mom-and-Pop Establishment?


                          "Mom-and-pop" is a colloquial term used to describe a small, family-owned, or independent business. Mom-and-pop stores are often operations that struggle to compete with more substantial establishments, such as big-box retailers, who generally boast more buying power than smaller players. In the last few years, "shop local" and "shop small" have been used as slogans in marketing campaigns. The term "mom-and-pop" also refers to inexperienced investors who casually play the market.


                          And it must be noted that ma and pa investors are not usually professional investors, 80% of all property investors own only 1 property, I’d say 40% LVR would have some sort of effect, let alone cashflow issues.
                          "DEBT BECOMES IRRELEVANT WITH INFLATION".

                          Comment


                          • #14
                            Originally posted by PC View Post
                            Are us naughty "speculators" driving the market higher?
                            Personally I can only afford to buy something that makes economic sense. A bargain that can wipe it's own nose.
                            Can't compete with the Government spending $750M to snap up houses at full market value.
                            Can't compete with those dastardly FHBs that pay too much.
                            But I guess that isn't part of the narrative.
                            Yeah with low interest rates FHB are asking “how much can I borrow?” And then they throw the lot at an offer even if it’s way over the RV. There’s no research done by them.

                            So who’s to blame for this activity? Not investors but the media IMHO, scaremongering that FHBs are missing out.

                            Investors are missing out as they know not to pay stupid $$ way over what the property is realistically worth.

                            I know a couple of FHM who came in late and just chucked everything at an offer and now they’re questioning if it was worth it.

                            cheers
                            Donna

                            Email Sign Up - New Discussions, Monthly Newsletter, About PropertyTalk


                            BusinessBlogs - the best business articles are found here

                            Comment


                            • #15
                              Originally posted by donna View Post

                              Yeah with low interest rates FHB are asking “how much can I borrow?” And then they throw the lot at an offer even if it’s way over the RV. There’s no research done by them.

                              So who’s to blame for this activity? Not investors but the media IMHO, scaremongering that FHBs are missing out.

                              Investors are missing out as they know not to pay stupid $$ way over what the property is realistically worth.

                              I know a couple of FHM who came in late and just chucked everything at an offer and now they’re questioning if it was worth it.

                              cheers
                              Donna
                              The issue with fomo is cool heads go out the window when the dream of owning your own home is just a hammers throw away.
                              We all know emotional FHBs will do anything within their given budget to own one. The opportunity cost is far greater now, average Auckland price is 1.1m.

                              there are alternatives to this, you can still get into Auckland for as little as 500k but she ain’t pretty. Does the have now generation what to start from the bottom and slowly climb the ladder, or is the want everything now generation to cool to start there.

                              my advice to anyone is to just start, no matter the cost, it ain’t getting any cheaper
                              "DEBT BECOMES IRRELEVANT WITH INFLATION".

                              Comment

                              Working...
                              X