• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Results 1 to 7 of 7
  1. #1
    Join Date
    Jul 2006
    Location
    North Shore
    Posts
    301

    Default Circumventing LVR restrictions

    Quote Originally Posted by http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11621360
    Auckland’s property market hitting new highs as investors find ways to circumvent restrictions.​

    ...
    Experts now say predictions the market would cool were premature, as investors found ways to circumvent controls.

    Is that the Herald correct that investors have found ways to circumvent the LVR restrictions?

    The options I know of are:
    - Use a non-bank lender (but pay higher interest rate)
    - Borrowing to 80% against your PPOR.
    - Wait for your property to increase in value (not really circumventing the restriction).

    What other options are there?

  2. #2
    Join Date
    Sep 2013
    Location
    Auckland
    Posts
    3,885

    Default

    - using exsting equity as you mentioned
    - borrow from parents/friends
    - use parent's/relative/friends house/rentals as security
    - non-bank lenders

    I don't think credit cards will work anymore because banks are a lot smarter with credit check etc, and also deposit these days are so large.

  3. #3
    Join Date
    Jul 2012
    Location
    Tavua, Fiji
    Posts
    3,347

    Default

    Equity from parents/friends is the main one.
    I am actually quite surprised the bank relaxed all this. You used to have to prove your own money was your own money, now it can come from anybody.

    The point of the article however was that values are rising so fast in Auckland you get the extra equity you need very quickly from the properties you already own. Typical bad reporting to create a headline.

  4. #4
    Join Date
    Jan 2012
    Posts
    1,034

    Default

    Quote Originally Posted by Gary Lin View Post
    -I don't think credit cards will work anymore because banks are a lot smarter with credit check etc, and also deposit these days are so large.
    Credit cards still work. I had $90k across 3 cards. Dropped it to $60k across two after the banks started to talk about tightening up but I had absolutely no trouble renewing them both. Too risky if you don't know what you are doing. Stuff up the numbers and you could lose the house.

  5. #5
    Join Date
    Sep 2013
    Location
    Auckland
    Posts
    3,885

    Default

    Quote Originally Posted by Learning View Post
    Credit cards still work. I had $90k across 3 cards. Dropped it to $60k across two after the banks started to talk about tightening up but I had absolutely no trouble renewing them both. Too risky if you don't know what you are doing. Stuff up the numbers and you could lose the house.
    Well 90k alone in Auckland won't buy much...

    Maybe a home with 20% deposit...

  6. #6
    Join Date
    Jan 2012
    Posts
    1,034

    Default

    Quote Originally Posted by Gary Lin View Post
    Well 90k alone in Auckland won't buy much...

    Maybe a home with 20% deposit...
    Got ya, if you don't have an asset to offset with the credit card it won't work.
    Last edited by Learning; 16-04-2016 at 12:40 PM.

  7. #7
    Join Date
    Aug 2009
    Location
    All of New Zealand
    Posts
    837

    Default

    Refi owner occupied to 85% and it's possible to go to 90% on a purchase, in Auckland. More expensive yes however if you not in the market you lose anyway. As a guide only....80% investment 5.15% fixed two years, 85% 5.65% and 90% 6.15%. This against 70% with the Banks at low fours for two years but this is irrelevant really as if one doesn't have the required deposit the Banks could be charging 1%, ya can't have it!
    www.ilender.co.nz
    Financial Paramedics


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Being cheeky with LVR restrictions
    By MiniLloydie in forum Finance, legal and tax (NZ)
    Replies: 3
    Last Post: 06-10-2017, 01:28 PM
  2. What would rolling back the LVR restrictions mean for you?
    By Nick G in forum Property Investment (NZ)
    Replies: 5
    Last Post: 01-09-2017, 12:35 PM
  3. LVR restrictions and mixed use property
    By Invest in forum Property Investment (NZ)
    Replies: 4
    Last Post: 13-08-2016, 12:53 PM
  4. Fence restrictions
    By VKR in forum Property Improvements (NZ)
    Replies: 6
    Last Post: 21-05-2016, 11:52 PM
  5. With the new restrictions coming up - Should I still buy immediately?
    By Acandria in forum Property Investment (NZ)
    Replies: 16
    Last Post: 15-06-2015, 04:34 PM
  6. Radio NZ National Piece on LVR Restrictions
    By cube in forum Finance, legal and tax (NZ)
    Replies: 21
    Last Post: 23-09-2013, 03:34 PM
  7. Reserve Bank - LVR restrictions - what would they be and how to avoid ?
    By Bluekiwi in forum Property Investment (NZ)
    Replies: 21
    Last Post: 17-12-2012, 10:20 PM
  8. Level six restrictions for SE Queensland
    By muppet in forum Regions News (Oz)
    Replies: 0
    Last Post: 12-11-2007, 03:07 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •