Landlords ignorant of upcoming LVR rules
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Landlords remain largely ignorant of new Reserve Bank rules which kick in next Sunday,
demanding Auckland investors have 30 per cent deposits.
A Westpac NZ online survey of 2000 property owners found only 5 per cent knew
when the changes came into force, nearly 30 per cent had not heard anything about
the changes and 53 per cent had heard something but did not know the details.
Westpac concluded that property investors, particularly in Auckland, were worryingly
unaware of the detail and implications around the new LVR regulations.
An "alarming" 61 per cent of new investors had heard something but knew no details, the bank said.
Of current property investors who are looking to buy again in the next 12 months,
17 per cent had not heard anything about the pending changes and half had heard
about them but knew no details.
The Reserve Bank is tightening LVR rules to reign in Auckland investors,
ensuring banks demand 30 per cent deposits for a mortgage secured against
an investment property.
The change comes into effect on November 1.
demanding Auckland investors have 30 per cent deposits.
A Westpac NZ online survey of 2000 property owners found only 5 per cent knew
when the changes came into force, nearly 30 per cent had not heard anything about
the changes and 53 per cent had heard something but did not know the details.
Westpac concluded that property investors, particularly in Auckland, were worryingly
unaware of the detail and implications around the new LVR regulations.
An "alarming" 61 per cent of new investors had heard something but knew no details, the bank said.
Of current property investors who are looking to buy again in the next 12 months,
17 per cent had not heard anything about the pending changes and half had heard
about them but knew no details.
The Reserve Bank is tightening LVR rules to reign in Auckland investors,
ensuring banks demand 30 per cent deposits for a mortgage secured against
an investment property.
The change comes into effect on November 1.
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