No big deal. As far as I know the UK banks charge a premium on your FIRST investment property, so its not a unique NZ-only thing.
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NZ Property Investors Federation.
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They make a good point at the end re the amounts involved. You could have little borrowing over 20 properties and be caught in this, but not be caught with heaps of borrowings over 4 properties.
Typical bureaucratic rubbish as far as I'm concerned.Squadly dinky do!
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That article, I must say, is more measured than his initial quote to the reporter.
While it could be a hassle and costly to change lenders, King said it would still be simple enough to skirt the rules.
"It would be very easy to get around it.
You could even set up different entities; trusts and companies," he said.
"It'd be very hard to prove something like that
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The NZPIF does not believe that this is an appropriate way to classify risk between different loan types and that the change will unfairly discriminate against many rental property owners.
As an example, how is a person who owns 4 properties worth $4,000,000 and debt of $3,600,000 less of a risk than another person with 5 properties worth $1,000,000 and debt of $200,000?
Targeted LVRs for investors has been mentioned has it not ?
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Heaps of mort over 4 versus little over 5 is a problem fro the designers of this law. I guess they have to draw the line somewhere, but I would rather it was done on a sliding scale of equity, much like the higher rates if you borrow over 90% (or whatever it is). Or just apply the higher rates to EVERY rental.
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Hamish Patel | ph: 09 625 4693 | mob: 021 625 693
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Limiting borrowing to 65% over 15 years and being hit with a higher rate is just plain nasty! Perhaps time to revisit the "What would you do if you didn't invest in property" thread???You can find me at: Energise Web Design
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Originally posted by speights boy View PostOr, be content with a few million as opposed to needing 10 mil.
The annoying thing for me is a few houses in Whangarei is not the same as a few houses elsewhere! If they don't bring in actual dollar limits, then I'd be better off selling and re-investing in less houses in Auckland.You can find me at: Energise Web Design
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