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  1. #1
    Join Date
    Aug 2009
    Location
    All of New Zealand
    Posts
    837

    Default Proposed LVR limits

    OK, what do you think? Here's my take.
    Restricting LVR's will do nothing to stop price rises and will do everything to inhibit ordinary Kiwi's buying their first home. This will lead to a backlash against National and I don't think Key really wants this.
    It will not stop investers both local and overseas from buying nor those moving property with equity. First home buyers needing 90% borrowing account for less than 10% of all borrowers.
    The real problem is lack of supply and this has been made worse by years of inactivity as a result of lack of funding and huge costs/delays by the Council. Unless the supply is addressed Auckland's prices will continue to rise, basic economics. Am I missing something?
    www.ilender.co.nz
    Financial Paramedics

  2. #2

    Default

    I agree.
    That is why I said on another thread IF LVR restrictions are used, and IF FHBs are not exempt; I would expect a rapid political response.

    The pressure on Key will only increase on this issue.

  3. #3
    Join Date
    Dec 2007
    Posts
    887

    Default

    Brokerman, have a question for you. How many of your clients are first home buyers wanting to get in before the LVR limits kick in?

    Do you think the current price rises are driven in part by first home buyers rushing in?

  4. #4
    Join Date
    Mar 2007
    Location
    Auckland
    Posts
    3,032

    Default

    Quote Originally Posted by brokerman View Post
    . . . . Am I missing something?
    Yes.

    Votes.

    The majority of voters already own their own homes.
    First home buyers, regardless of all the sob-story publicity, are very much a minority.
    Therefore any action that reduces the value of existing homes is electoral suicide (Vote for me - I'll make your house worth less!).

    But the Government is under pressure "To Do Something'.

    So the Yes Minister answer is to announce some changes, together with trumpets and drums, that will have no effect. This should get things through to past the next election.

  5. #5
    Join Date
    Aug 2009
    Location
    All of New Zealand
    Posts
    837

    Default

    There are quite a few and many are being panicked by this which is totally unfair. Typical blundering by bureaucrats having little grasp of reality.

    No I don't think so, it's a combination of many factors, population growth in 'the' capital City in New Zealand plus of course too few properties being built.
    www.ilender.co.nz
    Financial Paramedics

  6. #6

    Default

    Quote Originally Posted by flyernzl View Post
    The majority of voters already own their own homes.
    First home buyers, regardless of all the sob-story publicity, are very much a minority.
    Therefore any action that reduces the value of existing homes is electoral suicide (Vote for me - I'll make your house worth less!).
    But, those FHBs most likely have parents, aunties, uncles, cousins who are homeowners, voters, and who have a great deal of (biased) sympathy.
    I believe a lot of people see measures that reduce the rate of increase to a more sustainable level as what is being proposed.
    Not the (Vote for me - I'll make your house worth less!) rhetoric.

  7. #7
    Join Date
    Apr 2005
    Posts
    2,711

    Default

    Quote Originally Posted by brokerman View Post
    There are quite a few and many are being panicked by this which is totally unfair.

    .
    Yes…lol…unfair…. especially to brokers.

  8. #8

    Default

    Quote Originally Posted by brokerman View Post
    There are quite a few and many are being panicked by this which is totally unfair. Typical blundering by bureaucrats having little grasp of reality.
    What do you see as the RBNZ's mandate ?

    Ensure economic and banking stability;
    or
    Ensure first home buyers are able to borrow high LVR loans from the banks?

  9. #9
    Join Date
    Apr 2004
    Location
    Auckland
    Posts
    1,908

    Default

    Will this drive rents up even more?
    No big deposit -> have to rent.

    Mwahahahaahhaha
    The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

  10. #10
    Join Date
    Aug 2009
    Location
    All of New Zealand
    Posts
    837

    Default

    Quote Originally Posted by McDuck View Post
    Yes…lol…unfair…. especially to brokers.
    This coupled with Agents marketing via Auction certainly makes life challenging!
    www.ilender.co.nz
    Financial Paramedics


 

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