Debt to Income Ratio - are you in the 60%? Poll

[donna]

Hi All,

Having just read that 60% of Property Investors have a debt more than 5 times their income and 35 % of home owners are also in the same situation I wondered how many of us are in the 60% and how concerned are we about the RBNZ considering a max. borrowing of 5 times the income (currently it's 9 times)?

cheers,

Donna

[Bobsyouruncle]

Assuming they don't grandfather it then it won't "affect" any investors other than to slow down their buying. Which means we will go to non banks for money or do more trading. It will only affect home buyers really don't you think?

[Nick G]

Income includes cashflow from rentals, if so then I'm fine.

[PTILoveYou]

My ratio is about 9 to 10.

Not concerned, as I will always profit from any unintended consequences.

[Perry]

More fiddling while Rome burns . . .

[PTILoveYou]

If the 4.5 or 5 debt to income ratio comes into force.

I will setup a finance company.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$

Just saying, there is always a short cut.

[brendan]

Currently just under 7, about to go to 8.

[Keys]

4.8 (mamc)

[Viking]

Well Donna is the turkey in the Bank House talking net incomes or gross incomes?
Does he even know what they are?

a good blog to follow is Micheal Redell. Ex RBNZ.

https://croakingcassandra.com/

Does that include any mortgage on you own house?

Is it relevant of your LVR is low?

Will he apply the same rules to commercial. This week commercial in Tauranga has bee selling at yields of 4.5%.
25 bidders for the same property. Nuts.

So many unanswered questions.

[cube]

Unintended consequence - rents rise to 20% yield?

[Wayne]

Unintended consequence - rents rise to 20% yield?

Only if you can get the money out of the people - they can't afford it so you can't.
They'll live in their cars and get in the newspaper instead.

[donna]

So 2nd tier lenders will be in high demand. I wonder if there will be a dumping of properties later this year - before an expected announcement on the income to debt ratio fixing?

cheers,

donna

[Perry]

Has anyone seen the counter-point ever mentioned? As in - this is symptom chasing - not cause fixing. And scapegoat creating, too.

[Wayne]

Has anyone seen the counter-point ever mentioned? As in - this is symptom chasing - not cause fixing. And scapegoat creating, too.

Would you expect to see any rational debate on this - not very polulist really?

[Perry]

Not from the woodenheads and their sycophants, but perhaps there's an off chance that there's a few folk who might get some media exposure who just may raise some valid counter-points?

But your implication is right - silly me.